The quantity exchanged in the market will be below the equilibrium quantity

Question

Quizplus · Accepted Answer

Excess supply or demand indicates a market imbalance, leading to a quantity exchanged that is not at equilibrium. Excess supply means producers are unable to sell all their goods at the current price, while excess demand means consumers are unable to buy as much as they want at the current price, both scenarios leading to a deviation from equilibrium quantity.

The Quantity Exchanged in the Market Will Be Below the Equilibrium