If quantity supplied is less than quantity demanded, then
A)there is a shortage in the market.
B)prices will fall.
C)equilibrium has been achieved.
D)consumer incomes will increase.
E)there is a surplus in the market.

Question

Quizplus · Accepted Answer

When quantity supplied is less than quantity demanded, it means that demand exceeds supply and there are not enough goods to meet the demand. This creates a shortage in the market. As a result, consumers may compete for the limited supply, causing prices to rise until the market reaches equilibrium.

If Quantity Supplied Is Less Than Quantity Demanded, Then