Practice mode Market

What happens when a good’s price is below the equilibrium price?

Correct answer B. There is a shortage and the price will rise

Explanation

Below equilibrium, buyers want more than sellers offer. Competition among buyers for the scarce goods pushes the price upwards until the shortage disappears.

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Answer checked 11 October 2026 How we write and check questions

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What happens when a good’s price is below the equilibrium price?

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What happens when a good’s price is below the equilibrium price?

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