-At price P₃ in Figure 4-21, what will tend to happen? A)There will be a shortage, and the price will fall. B)There will be a shortage, and the price will rise. C)There will be a surplus, and the price will rise. D)There will be a surplus, and the price will fall. E)Equilibrium will occur in the market.

Question

Quizplus · Accepted Answer

At price P₃, if there is a shortage, it means demand exceeds supply. In a market, when demand exceeds supply, prices tend to rise as consumers are willing to pay more to obtain the product they want.

-At Price P3 in Figure 4-21, What Will Tend to Happen

-At Price P₃ in Figure 4-21, What Will Tend to Happen