In a market where the equilibrium price is $7,any price lower than $7 would cause

Name: In a market where the equilibrium price is $7,any price lower than $7 would cause
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Question

​In a market where the equilibrium price is $7,any price lower than $7 would cause

Quizplus · Accepted Answer

The equilibrium price is the point where the demand and supply curves intersect, resulting in a balanced market. Any price lower than the equilibrium price of $7 would result in a lower supply and a higher demand for the product, causing an excess demand in the market. Hence, the correct answer is C.

​In a Market Where the Equilibrium Price Is $7,any Price

In a Market Where the Equilibrium Price Is $7,any Price