The correct answer is: A. a-2, b-4, c-1, d-3
Explanation:
a. Equilibrium price is the price where the quantity demanded equals the quantity supplied.
b. Excess supply can be defined as the quantity supplied minus the quantity demanded.
c. Tea and sugar are complementary goods.
d. Excess demand can be defined as the quantity demanded minus the quantity supplied.
In economics, equilibrium is the state of balance between supply and demand. When the quantity demanded of a good or service equals the quantity supplied, the market is said to be in equilibrium. The equilibrium price is the price at which the market is in equilibrium.
Excess supply occurs when the quantity supplied of a good or service is greater than the quantity demanded. This can happen when the price is too high, or when the demand for the good or service is low. Excess supply can lead to a decrease in price, as sellers compete to sell their goods or services.
Excess demand occurs when the quantity demanded of a good or service is greater than the quantity supplied. This can happen when the price is too low, or when the demand for the good or service is high. Excess demand can lead to an increase in price, as buyers compete to purchase the good or service.
Tea and sugar are complementary goods. This means that they are often used together, and that the demand for one good is often affected by the price of the other. For example, if the price of tea increases, the demand for sugar may also decrease, as people may choose to drink less tea.