At price P ₃ in Figure 4-21, what will tend to happen? A) There will be a shortage, and the price will fall. B) There will be a shortage, and the price will rise. C) There will be a surplus, and the price will rise. D) There will be a surplus, and the price will fall. E) Equilibrium will occur in the market.

Question

Quizplus · Accepted Answer

At the given price, the quantity demanded (_{) exceeds the quantity supplied (}), creating a shortage. This will cause buyers to compete for the limited available supply, driving the price up until the market reaches a new equilibrium.

At Price P 3 in Figure 4-21, What

At Price P ₃ in Figure 4-21, What