Suppose we have the following information and sequence of events for the cow market:
Initially at the first equilibrium P = $10 and Qe=1000. The new equilibrium P = $9, quantity supplied = 900 and quantity demanded = 1100.
This causes:
a. Excess supply of 200
b. Excess demand of 200
c. Excess supply of -200
d. Excess demand of -200