Question

The markets return to an equilibrium when the quantity supplied equals the quantity demanded as market participants respond to rising prices, resulting in an elimination of a ______.

Answer 1

The markets return to an equilibrium when the quantity supplied equals the quantity demanded, resulting in an elimination of a shortage.

Step-by-step explanation:

The markets return to an equilibrium when the quantity supplied equals the quantity demanded as market participants respond to rising prices, resulting in an elimination of a shortage.

When the price is below equilibrium, there is excess demand or a shortage, as the quantity demanded exceeds the quantity supplied. This prompts sellers to recognize the opportunity for higher profits and raise prices, bringing the market back to equilibrium.