Excess Demand in Supply-Demand Model

Steps:

• Stadium capacity fixes supply at 40,000 tickets.
• High demand from major event causes more buyers than tickets available.
• Tickets sell out quickly, leading to shortage and disappointed people.
• Diagram must show demand curve above supply curve at prevailing price.

Why B is correct:

• B depicts excess demand where quantity demanded exceeds quantity supplied, matching the shortage definition in microeconomics.

Why the others are wrong:

• A shows market equilibrium with no shortage.
• C illustrates excess supply with surplus tickets.
• D represents a demand shift without fixed supply constraint.

Final answer: B