If the price of a video download is below its equilibrium price, the quantity supplied is ________ than the quantity demanded. If the price of a video download is above its equilibrium price, the quantity supplied is ________ than the quantity demanded.

Question

Quizplus · Accepted Answer

When the price of a video download is below its equilibrium price, the quantity supplied is less than the quantity demanded because producers are not willing to supply as much at a lower price, leading to a shortage. Conversely, when the price is above its equilibrium, the quantity supplied is greater than the quantity demanded because producers are willing to supply more at a higher price, leading to a surplus.

If the Price of a Video Download Is Below Its