Final answer:
When the market price is below the equilibrium price, a shortage occurs leading to an increase in the market price until it reaches the equilibrium price.
Step-by-step explanation:
In a competitive market, when the price of a good is less than the equilibrium price, there will be an excess demand or a shortage. This condition prompts prices to increase as consumers compete to purchase the limited quantity available. Suppliers, responding to the potential for higher profits, will be motivated to increase production to meet the higher demand. This process will continue until the shortage is eliminated and the market price adjusts to the equilibrium level where the quantity supplied equals the quantity demanded.
Therefore, the correct answer is:
'Price will increase to eliminate the shortage and restore equilibrium.'