Exhibit 3-7 Demand and supply curves

-In Exhibit 3-7,if price happened to currently be $25 in this market,a ____ would result,causing a(n)____ in price.

Question

Exhibit 3-7 Demand and supply curves
 
-In Exhibit 3-7,if price happened to currently be $25 in this market,a ____ would result,causing a(n)____ in price.

Quizplus · Accepted Answer

At a price of $25, the quantity demanded (as shown by the demand curve) would be higher than the quantity supplied (as shown by the supply curve). This would result in a shortage of the product, leading to an increase in price as consumers compete to purchase the limited supply available.

Exhibit 3-7 Demand and Supply Curves