Register
If, at the current price, there is a shortage of a good, thena. sellers are producing more than buyers wish to buy.b. the market must be in equilibrium.c. the price is below the equilibrium price.and.
135k views
5 votes
If, at the current price, there is a shortage of a good, thena. sellers are producing more than buyers wish to buy.b. the market must be in equilibrium.c. the price is below the equilibrium price.and. quantity demanded equals quantity supplied.

User Niclar
by
5.1k points

1 Answer

5 votes

Answer:

C. the price is below the equilibrium price

Step-by-step explanation:

Remember, in the law of demand and supply the quantity supplied is dependent on the value of the price of a good.

In this case the price is below the equilibrium price; meaning demand would be higher than the supply which results in the shortage of the good and the company therefore raises the price of the good.

For example, the price of oranges decrease in the equilibrium price (from $10 to $5), resulting in an increase in the demand for oranges.

The increase in demand would lead to shortage, making farmers increase price wanting to supply more.

User Catsky
by
5.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.4m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!