When the market price of a good is below the equilibrium price, and all other determinants are unchanged:
A) the quantity demanded will exceed the quantity supplied.
B) the supply curve will be to the right of the demand curve.
C) a surplus will exist in the market.
D) the government will regulate the price of the good to ensure equilibrium is attained.

Question

Quizplus · Accepted Answer

When the market price is below the equilibrium price, the quantity demanded exceeds the quantity supplied, leading to a shortage.

When the Market Price of a Good Is Below the Equilibrium