Question

If a product is sold at the price indicated and supplied in the quantity indicated by the intersection of the supply and demand

curves in the graph, there should be
A)
an increase in price.
B)
no shortage and no surplus.
a shortage until the price is raised.
D)
a change in the expected future price.

Answer 1

B) no shortage and no surplus.

Step-by-step explanation:

The market is said to be in the state of equilibrium when the curves of the supply and demand intersect with each other. It is at this position that the quantity of product supplied and the quantity of the demand are equal. The state of surplus is reached when the market price exceeds the equilibrium price. Market price falls when the supply quantity is greater than the demand quantity.