Assuming that price is below the equilibrium price, which of the following is correct?
A) There will be upward pressure until the price reaches the equilibrium price.
B) There will be downward pressure until the price reaches the equilibrium price.
C) There might be upward or downward pressure on price.
D) There will be no pressure on price.

Question

Quizplus · Accepted Answer

When the price is below the equilibrium price, there is more demand than supply, leading to upward pressure on the price until it reaches the equilibrium level.

Assuming That Price Is Below the Equilibrium Price, Which of the Following