If the electronics market is experiencing a shortage in the supply of mobile phones being sold at a cost that buyers are more than willing to pay for, then:
A)the selling price is higher than the equilibrium price.
B)the equilibrium price is higher than the selling price.
C)the quantity demanded is less than the quantity supplied.
D)the shortage could be eliminated by lowering the price.

Question

If the electronics market is experiencing a shortage in the supply of mobile phones being sold at a cost that buyers are more than willing to pay for, then:
A)​the selling price is higher than the equilibrium price.
B)​the equilibrium price is higher than the selling price.
C)​the quantity demanded is less than the quantity supplied.
D)​the shortage could be eliminated by lowering the price.

Quizplus · Accepted Answer

A shortage occurs when the quantity demanded exceeds the quantity supplied, which typically happens when the selling price is below the equilibrium price.

If the Electronics Market Is Experiencing a Shortage in the Supply