If the quantity demanded for a product exceeds the quantity supplied,the market price will rise until
A)the quantity demanded equals the quantity supplied.The product will then no longer be scarce.
B)quantity demanded equals quantity supplied.The equilibrium price will then be greater than the market price.
C)only wealthy consumers will be able to afford the product.
D)quantity demanded equals quantity supplied.The market price will then equal the equilibrium price.

Question

Quizplus · Accepted Answer

This is because at equilibrium, the quantity demanded and the quantity supplied are equal, leading to a stable market price that is determined by the intersection of the demand and supply curves. If the quantity demanded exceeds the quantity supplied, this creates a shortage, driving up the price until the market reaches equilibrium. Therefore, the market price will rise until the quantity demanded equals the quantity supplied, and the market reaches equilibrium with the market price equaling the equilibrium price.

If the Quantity Demanded for a Product Exceeds the Quantity