If price is $0.98, there would be scarcity of Super Widgets.
When price is $0.98, quantity demanded is y.
When price is $0.98, quantity supplied is x.
When price is $1.22, there would be a surplus of Super Widgets.
<h3>What is equilibrium? </h3>
Equilibrium price is the price at which the quantity demanded equals the quantity supplied. The equilibrium price is $1.12.
Above equilibrium price, quantity supplied would exceed quantity demanded and there would be a surplus. When price is below equilibrium price, quantity supplied would be less quantity demanded and there would be a scarcity.
