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if the price of a good falls below the equilibrium price demand and supply react to bring to an equilibrium level, This is Called?

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Final answer:

When the price falls below equilibrium, it leads to excess demand or shortage, and the price starts rising toward equilibrium.

Step-by-step explanation:

When the price of a good falls below the equilibrium price, it leads to excess demand or a shortage. This means that the quantity demanded at the lower price exceeds the quantity supplied at that price.

As a result, eager buyers try to purchase the good, but find a limited supply, leading to a situation where the price starts rising toward the equilibrium level.

User Gyuri Majercsik
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