If the quantity demanded of a good is greater than the quantity supplied of the good at the current price,then

Question

Quizplus · Accepted Answer

If the quantity demanded is greater than the quantity supplied, this indicates that there is excess demand or a shortage of the good in the market. As a result, consumers may be willing to pay more to acquire the good, and producers are likely to increase the price to increase their profits. This increase in price will encourage consumers to reduce their demand for the good, while at the same time, it will encourage producers to increase their supply until the market reaches an equilibrium point where the quantity demanded equals the quantity supplied. Therefore, the price will increase until it reaches the equilibrium price.

If the Quantity Demanded of a Good Is Greater Than