If price is below the equilibrium value,then
A) producers cannot sell all they make.
B) neither buyers nor sellers wish to alter their behaviour.
C) the government must enforce price controls.
D) buyers will start to bid the price up.
E) a surplus develops.

Question

Quizplus · Accepted Answer

When the price is below the equilibrium value, there is excess demand, leading buyers to bid the price up to reach equilibrium.

If Price Is Below the Equilibrium Value,then