3.3 Market Equilibrium: Bringing Demand and Supply Together
Figure 3.2
-Figure 3.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that

Question

3.3 Market Equilibrium: Bringing Demand and Supply Together
  Figure 3.2
-Figure 3.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that

Quizplus · Accepted Answer

When the actual price is below the equilibrium price, there is excess demand (a shortage), leading to an increase in price until quantity demanded equals quantity supplied.