Suppose a market is initially in equilibrium. If the demand for a good increases, and the price of that good stays the same, then we would expect a shortage to occur.

Name: Suppose a market is initially in equilibrium. If the demand for a good increases, and the price of that good stays the same, then we would expect a shortage to occur.
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Question

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When demand for a good increases but its price remains unchanged, the quantity demanded exceeds the quantity supplied, leading to a shortage.

Suppose a Market Is Initially in Equilibrium