The graph shows excess supply.

which explains why the price indicated by p2 on the graph is higher than the equilibrium price?

a) as prices rise, demand goes up.
b) as prices rise, demand goes down.
c) as prices rise, demand stays the same.
d) as prices rise, demand disappears.

The correct answer is B.

A demand function represents the quantity of a certain good or service that consumers are willing to purchase at different prices level. The law of demand states that there is an inverse relationship between price and quantity supplied (ceteris paribus).Therefore, when the market price increases, the amount demanded drops.

A supply function represents the quantity of a certain good or service that producers are willing to supply at different prices level. The law of supply states that there is a direct relationship between price and quantity supplied (ceteris paribus).Therefore, when the market price increases, so does the amount that producers desire to supply.

For a price level located above the equilibrium, the quantity demanded has decreased while the quantity supplied has increased. This is why it leds to an excess supply situation.

county governments

the correct answer is "c: merchants" and "e. soldiers".

the song dynasty was known as the first government in the world to introduce paper currency. it was also the first chinese government which established a permanent standing navy. finally, the first compass was introduced during this period of government.

all of these innovations heavily affected commerce in a positive way. printed money dynamize commerce within the borders of the empire due to an easier way to quantify value during the trade. the introduction of the compass trade routes to be faster. finally, the introduction of a standing navy regulate trade routes.

regarding military affairs, gunpowder was created during this period. this was a tremendous improvement that was widely utilized by the military in order to innovate in the manufacturing of weapons.