If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.
A) rise; greater
B) fall; less
C) fall; greater
D) rise; less
E) a and b

Question

Quizplus · Accepted Answer

When the quantity demanded is greater than the quantity supplied, prices tend to rise to reach equilibrium, as the scarcity of the product increases its value. Conversely, when the quantity demanded is less than the quantity supplied, prices tend to fall to eliminate the surplus and reach equilibrium.

If a Market Is in Disequilibrium,economists Would Predict That the Product's