A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Name: A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.
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Question

Quizplus · Accepted Answer

At a price below equilibrium, quantity demanded exceeds quantity supplied, leading to a shortage. Conversely, at a price above equilibrium, quantity supplied exceeds quantity demanded, resulting in a surplus.

A Shortage Will Occur at Any Price Below Equilibrium Price