Final answer:
When supply cannot meet customer demand, it results in a shortage which typically causes the average market price of the item to increase, settling higher than the equilibrium price.
Step-by-step explanation:
If the supply of a pair of jeans is less than what would meet customer demand, the likely outcome is that the average market price of the jeans would increase. When the quantity supplied is less than the quantity demanded, it creates excess demand or a shortage. According to basic economic principles, this shortage puts upward pressure on the price, causing it to rise above the equilibrium point until the quantity supplied and quantity demanded are equal again. Therefore, the correct answer is B: the average market price is higher than the equilibrium point.