When the price of a good is below its equilibrium value,
A) consumers will bid the price up.
B) excess supply will occur.
C) it will tend to stay below the equilibrium value.
D) suppliers will notice their inventories are growing.
E) suppliers will lower the price.

Question

Quizplus · Accepted Answer

When the price of a good is below its equilibrium value, there is excess demand, leading consumers to bid the price up to reach equilibrium.

When the Price of a Good Is Below Its Equilibrium