quantity demanded is equal to quantity supplied. At a price above equilibrium like $1.80, quantity supplied exceeds

the quantity demanded, so there is excess supply. At a price below equilibrium such as $1.20, quantity demanded

exceeds quantity supplied, so there is excess demand.

Price (per gallon) Quantity demanded (millions of gallons) Quantity supplied (millions of gallons)

$1.00

$1.20

$1.40

800

700

600

500

550

600

TABLE 3.3 Price, Quantity Demanded, and Quantity Supplied

Access for free at openstax.org
3.1 • Demand, Supply, and Equilibrium in Markets for Goods and Services 53

Price (per gallon) Quantity demanded (millions of gallons) Quantity supplied (millions of gallons)

$1.60

$1.80

$2.00

$2.20

550

500

460

420

640

680

700

720

TABLE 3.3 Price, Quantity Demanded, and Quantity Supplied

Remember this: When two lines on a diagram cross, this intersection usually means something. The point
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