At a price below the equilibrium price, there is Answers: a surplus

Economics Sep 13, 2020

At a price below the equilibrium price, there is

Answers:

a surplus.

a shortage.

excess supply.

sub-equilibrium.

none of the above

Expert Solution

At a price below the equilibrium price, there is a shortage (excess demand) because when the current price is below the equilibrium price then the demand for product increases. So, the quantity demanded is greater than the quantity supplied.

Hence, the correct option is 2). a shortage

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote