What is quantity transacted? (L1)

Quantity transacted refers to the actual amount of goods or services transacted under a given market price.

When the market is in the equilibrium situation, where quantity demanded equals to quantity supplied, then the quantity transacted equals to the quantity demanded and quantity supplied. (Fig 1)

When shortage exists, the market price is lower than the equilibrium price. Quantity demanded is greater than the quantity supplied. The actual amount of goods or services transacted will be equal to the quantity supplied. Sellers do not have enough incentive to produce more. (Fig 2)

When surplus exists, the market price is higher than the equilibrium price. Quantity supplied is greater than the quantity demanded. The actual amount of goods or services transacted will be equal to the quantity demanded. The price is too high that buyers do not want to consume. (Fig 3)