Exhibit 3-4 Demand and supply curves

-In Exhibit 3-4,if price happened to currently be $25 in this market,a _____ would result,causing a/an _____ in price.

Question

Exhibit 3-4 Demand and supply curves
 
-In Exhibit 3-4,if price happened to currently be $25 in this market,a _____ would result,causing a/an _____ in price.

Quizplus · Accepted Answer

At a price of $25, the quantity demanded is greater than the quantity supplied, resulting in a shortage. In order to eliminate the shortage, the price must be increased to decrease the quantity demanded and increase the quantity supplied until the market clears.

Exhibit 3-4 Demand and Supply Curves