If the quantity of a product demanded is greater than the quantity of a product supplied, there is pressure in the market to push the price downward.

Question

Quizplus · Accepted Answer

If the quantity demanded is greater than the quantity supplied, there is actually pressure in the market to push the price upward, as buyers compete for the limited supply of the product. This is known as a shortage, and it can lead to an increase in price until the market reaches equilibrium.

If the Quantity of a Product Demanded Is Greater Than