If the market price is below the equilibrium price ?
Correct answer: A. quantity demanded will be greater than quantity supplied
- A. quantity demanded will be greater than quantity supplied
- B. quantity demanded will be less than quantity supplied
- C. demand will be less than supply.
- D. quantity demanded will equal quantity supplied .
Explanation
Below the equilibrium price, consumers want to buy more than producers are willing to sell, creating excess demand or a shortage. Competition among buyers tends to push the price upward toward equilibrium.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.