Which of the following will occur if the price level is below the equilibrium level?
A) Consumers will bid the price level up by competing for goods
B) The quantity demanded will increase as the price level increases
C) The quantity supplied will decrease as the price level increases
D) Producers will bid the price level down by competing for buyers

Question

Quizplus · Accepted Answer

If the price level is below the equilibrium level, it means that there is excess demand in the market. This will lead to consumers competing for goods and bidding the price level up until it reaches equilibrium. Therefore, choice A is the correct answer. The other options are not accurate because they suggest an increase in the quantity demanded or a decrease in the quantity supplied, which is not the case in this scenario.

Which of the Following Will Occur If the Price Level