Exhibit 3-7 Demand and supply curves In Exhibit 3-7, if price happened to currently be $25 in this market, a ____ would result, causing a(n) ____ in price.

Question

Exhibit 3-7  Demand and supply curves  In Exhibit 3-7, if price happened to currently be $25 in this market, a ____ would result, causing a(n) ____ in price.

Quizplus · Accepted Answer

At a price of $25, the quantity demanded is greater than the quantity supplied, resulting in a shortage. This shortage will cause prices to increase in order to reach a new equilibrium point where the quantity demanded equals the quantity supplied.

Exhibit 3-7 Demand and Supply Curves in Exhibit 3-7, If