Exhibit 3-10 Demand and supply curves In Exhibit 3-10, what do you expect to happen in this market at point C?

Question

Exhibit 3-10  Demand and supply curves  In Exhibit 3-10, what do you expect to happen in this market at point C?

Quizplus · Accepted Answer

At point C, the quantity demanded exceeds the quantity supplied, creating a shortage. This shortage will lead to competition among suppliers to meet the excess demand. As a result, suppliers will increase their prices, leading to a higher equilibrium price. Therefore, competition among suppliers will drive the price up.

Exhibit 3-10 Demand and Supply Curves in Exhibit 3-10, What