Which of the following statements best describes how equilibrium varies?
A) At prices below equilibrium, demand exceeds supply.
B) Government intervention is usually needed to achieve market equilibrium.
C) At prices above equilibrium, suppliers produce less than consumers are willing to buy.
D) A surplus of product pushes prices above equilibrium.

Question

Quizplus · Accepted Answer

At prices below equilibrium, demand exceeds supply because the lower price increases the quantity demanded by consumers while decreasing the quantity suppliers are willing to produce, leading to a shortage.

Which of the Following Statements Best Describes How Equilibrium Varies