When the current price of a good is below the equilibrium price:
A)buyers have an incentive to offer to pay sellers more than the current price.
B)there will be excess supply.
C)the price will tend to stay below the equilibrium price.
D)sellers will notice their inventories are growing.

Question

Quizplus · Accepted Answer

If, at the current price, there are more buyers who want to buy a good than there are sellers who wish to sell it, then frustrated buyers will have an incentive to offer to pay sellers a higher price to obtain the good.

When the Current Price of a Good Is Below the Equilibrium