Asked by Masaki Sakurai on Jun 04, 2024
Verified
There is a shortage of quantity demanded over quantity supplied when
A) market price is above equilibrium price.
B) market price equals equilibrium price.
C) market price is below equilibrium price.
Quantity Demanded
The aggregate quantity of a product or service that customers are prepared to buy at a specified price in a marketplace.
Quantity Supplied
The complete quantity of a product or service that sellers are ready and capable of offering for sale at a specified price point in the marketplace.
- Understand the principles behind shortages and surpluses and the reasons they occur.
Verified Answer
SC
Samantha CamposJun 09, 2024
Final Answer :
C
Explanation :
When the market price is below the equilibrium price, the quantity demanded exceeds the quantity supplied, leading to a shortage. This is because at lower prices, consumers are willing to buy more of the good than producers are willing to sell.
Learning Objectives
- Understand the principles behind shortages and surpluses and the reasons they occur.