If the quantity demanded exceeds the quantity supplied, then there is

Question

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When the quantity demanded exceeds the quantity supplied, it means that there is a shortage of the product. This would result in an increase in the price of the product in order to balance the excess demand with the limited supply. Therefore, the price would be above the equilibrium price. Option D is the only option that states there is a shortage with the price below the equilibrium price, so it is incorrect. Option A states there is a surplus, which is the opposite of a shortage, so it is also incorrect. Option B states that there is a surplus with the price above the equilibrium price, which is also incorrect.

If the Quantity Demanded Exceeds the Quantity Supplied, Then There