When there is excess demand for a product in a market,
A) price will tend to fall.
B) price must be below the equilibrium price.
C) price must be above the equilibrium price.
D) producers will reduce output and sales will fall.

Question

Quizplus · Accepted Answer

When there is excess demand, it indicates that the current price is below the equilibrium price, leading to a shortage as more consumers want the product than is available.

When There Is Excess Demand for a Product in a Market