The quantity of goods exchanged in a market will be below the equilibrium quantity
A)when the price is either held above or below the equilibrium price.
B)only when the price is held above the equilibrium price.
C)only when the price is held below the equilibrium price.
D)only when the price is rising.

Question

Quizplus · Accepted Answer

When the price is held above the equilibrium price, there is a surplus because the quantity supplied exceeds the quantity demanded. When the price is held below the equilibrium price, there is a shortage because the quantity demanded exceeds the quantity supplied. In both cases, the quantity exchanged is below the equilibrium quantity.

The Quantity of Goods Exchanged in a Market Will Be