Final answer:
If the price is set below the equilibrium level, the resulting condition is called excess demand or a shortage, often due to a price ceiling that prevents the price from rising to where supply would equal demand.
Step-by-step explanation:
When the price of a good is set below the equilibrium level, this condition results in a excess demand, which is also known as a shortage. In this situation, the quantity of the good that consumers are willing to buy at that lower price exceeds the quantity that producers are willing to sell. This mismatch is prominently caused by a price ceiling set below the equilibrium price, which prevents the price from rising to its natural equilibrium level where supply equals demand. The presence of a price ceiling leads to an increase in quantity demanded while simultaneously causing a decrease in quantity supplied, exacerbating the shortage.