Question

If the current price of a product is "below" the market equilibrium​ price, there is​ ________ of this product.

Answer 1

If the current price of a product is "below" the market equilibrium​ price, there is​ higher demand of this product.

Step-by-step explanation:

This analogy follows the law of demand that says the higher the price the lower the demand while the lower the price just as it was stated in the above mentioned analogy results into higher demand

Answer 2

There is a shortage of the product.

Step-by-step explanation:

The market demand curve is downward sloping indicating a negative relationship with price. While the market supply curve is upward sloping indicating a positive relationship with price.

At the market equilibrium, both demand and supply are equal. At a price below the equilibrium level, the market demand is greater than supply. This causes a shortage in the economy.