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A-Level Economics · Supply & demand diagram question

At the fixed price of £8, this market has…

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The diagram

The answer

Excess supply of 6. Qs 8 − Qd 2 = 6 unsold units (the distance G to H). Price above equilibrium → sellers keen, buyers scarce. £8 is ABOVE equilibrium: suppliers offer 8 (point H), consumers take 2 (point G) — 6 unsold units of EXCESS SUPPLY pushing price down.

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This is one of 3 questions on the supply & demand diagram — every corner lettered, every wrong answer diagnosed.

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