If the price is below the equilibrium level, there is a _____________and prices will _____________. Hint: When it doubt draw it out! surplus; decrease surplus; increase shortage; increase excess demand; decrease

If the price is below the equilibrium level, there is a _and prices will _. Hint: When it doubt draw it out! surplus; decrease surplus; increase shortage; increase excess demand; decrease

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 24P

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Question

If the price is below the equilibrium level, there is a _____________and prices will _____________. Hint: When it doubt draw it out!

surplus; decrease

surplus; increase

shortage; increase

excess demand; decrease

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The point at which demand and supply intersect gives the equilibrium price and quantity.

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