If,at the current price,there is a shortage of a good,then

Question

Quizplus · Accepted Answer

If there is a shortage of a good, it means that the quantity demanded exceeds the quantity supplied at the current price. This implies that the price is below the equilibrium price, as the equilibrium price is the price at which quantity demanded equals quantity supplied. Therefore, option C is correct. Option A is incorrect because it suggests that sellers are producing more, which is not the case in a situation of shortage. Option B is incorrect because a shortage indicates that the market is not in equilibrium. Option D is incorrect because quantity demanded does not equal quantity supplied in a situation of shortage.

If,at the Current Price,there Is a Shortage of a Good,then