Understanding Disequilibrium A graph has Quantity on the x-axis and price in dollars on the y-axis. A line that represents supply has a positive slope and a line that represents demand has a negative slope. The lines intersect each other at a point which represents equilibrium. Point B on the demand line represents the quantity supplied, and point A on the supply line represents quantity demanded. Both points are at the same price point, which is above equilibrium.

"A" represents the new quantity supplied, while "B" represents the new quantity demanded.

What is the result of these changes?

Based on this graph, what should happen to prices?

the answer is Excess Supply and The Price Should fall