The equilibrium price of a good in market A is $24.The current price of the good in market A is $21.At this price,a(n)________________________ of the good exists in market A.
A) surplus
B) shortage
C) excess supply
D) excess demand
E) b and d

Question

Quizplus · Accepted Answer

When the current price of a good is below its equilibrium price, there is more demand than supply at that price, leading to a shortage or excess demand. Both B and D describe this situation.

The Equilibrium Price of a Good in Market a Is