At a price for which quantity demanded exceeds quantity supplied,a __________ is experienced,which pushes the price __________ toward its equilibrium value.
A) surplus; downward
B) surplus; upward
C) shortage; downward
D) shortage; upward

Question

Quizplus · Accepted Answer

When quantity demanded exceeds quantity supplied, a shortage is experienced. This situation puts upward pressure on prices as consumers are willing to pay more to obtain the goods they desire, moving the price toward its equilibrium value where quantity demanded equals quantity supplied.

At a Price for Which Quantity Demanded Exceeds Quantity Supplied,a