Excess Supply at Price Above Equilibrium Steps:

• Locate the price of $2.50 on the supply and demand graph.
• Determine quantity demanded (QD) at $2.50: 2000 tonnes.
• Determine quantity supplied (QS) at $2.50: 6000 tonnes.
• Calculate disequilibrium: QS - QD = 6000 - 2000 = 4000 tonnes excess supply.

Why D is correct:

• At a price above equilibrium, the law of supply and demand predicts QS > QD, creating a surplus of 4000 tonnes as calculated.

Why the others are wrong:

• A: Incorrect direction; shows shortage, but graph indicates surplus.
• B: Correct direction but understates surplus; difference is 4000, not 2000 tonnes.
• C: Incorrect direction; assumes shortage of 4000 tonnes, but actual disequilibrium is surplus.

Final answer: D