If the quantity demanded for cars is lower than the quantity supplied,we can expect that:
A)the price of cars will increase.
B)the price of cars will not change.
C)car manufacturers will increase their production of cars.
D)the price of cars will decrease.

Question

Quizplus · Accepted Answer

When the quantity demanded for cars is lower than the quantity supplied, it creates a surplus in the market. To reduce this surplus and stimulate demand, car manufacturers or sellers are likely to lower the price of cars, leading to a decrease in price.

If the Quantity Demanded for Cars Is Lower Than the Quantity