If aggregate quantity demanded is greater than aggregate quantity supplied at a particular price level,then
A) consumers will bid prices upward,and a greater quantity of output will be supplied.
B) the shortage will likely be eliminated.
C) a and b
D) none of the above

Question

Quizplus · Accepted Answer

When aggregate quantity demanded exceeds aggregate quantity supplied, it creates a shortage. In response, consumers are willing to pay higher prices to obtain the goods they want, leading suppliers to increase production and supply more, thereby moving towards eliminating the shortage.

If Aggregate Quantity Demanded Is Greater Than Aggregate Quantity Supplied