When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Name: When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.
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Question

Quizplus · Accepted Answer

When the market price is below the equilibrium price, there is a shortage because the lower price increases the quantity demanded while decreasing the quantity supplied, leading to demand exceeding supply.

When the Market Price Is Below the Equilibrium Price, the Quantity