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 price P ₃, the quantity demanded (Qd) exceeds the quantity supplied (Qs) resulting in a shortage in the market. As a result, buyers will compete for the limited supply, causing the price to rise. Therefore, the correct answer is B.

At Price P 3 in Figure 4-21, What

At Price P ₃ in Figure 4-21, What