What happens if price falls below the market clearing price?
A) Demand shifts out.
B) Supply shifts in.
C) Quantity demanded decreases, quantity supplied increases, and price falls.
D) Quantity demanded increases, quantity supplied decreases, and price rises.

Question

Quizplus · Accepted Answer

When the price falls below the market clearing price, the quantity demanded increases and the quantity supplied decreases, leading to upward pressure on the price.

What Happens If Price Falls Below the Market Clearing Price