asked 164k views
13 votes
If a price is below the equilibrium price it creates a...

Shortage
Supply
Surplus
Market price

asked
User Evandor
by
8.6k points

1 Answer

8 votes

Answer: Shortage

Step-by-step explanation:

The equilibrium price is the price at which the demand for a particular product and its supply is equal.

When the price of a good is below the equilibrium price for that good, this will more people demanding the good which will therefore lead to a situation where the quantity demanded is less than the quantity that is supplied. This leads to a situation called shortage.

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User Fmpdmb
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9.0k points

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