Question

If, at the current price, there is a shortage of a good, then a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. the. quantity demanded equals quantity supplied

Answer 1

"C"

Step-by-step explanation:

Equilibrium price is the market price where the quantity of goods supplied is the same as quantity produced . It is graphically represented as the point of intersection between the supply and demand curve.

In a situation where the quantity supplied differs from the quantity produced , it means that the price is not in equilibrium , it is either it is set above or below equilibrium.

At above equilibrium , there will be excess of goods but while at below equilibrium , there will be shortage

Answer 2

Answer: Option c

Explanation: The production by the producers for availability in the market is knows as the supply function in economics. And the amount of goods that the consumers are willing to buy at a given price is the demand function.

Thus, if there is a shortage of good in the market it means the price charged by the suppliers is below the equilibrium level.Therefore, the consumers who actually do not need it are demanding the product.

Hence we can conclude that the right option is C.