When the market price of a good is below the equilibrium price:
A)the quantity demanded will exceed the quantity supplied.
B)the supply curve will be to the right of the demand curve.
C)a surplus will exist in the market.
D)the government will regulate the price of the good to ensure equilibrium is attained.

Question

Quizplus · Accepted Answer

When the market price is below the equilibrium price, the quantity demanded exceeds the quantity supplied, leading to a shortage.

When the Market Price of a Good Is Below the Equilibrium