Answer:
the current price is below its equilibrium price
Explanation:
When the current price is below its equilibrium price, demand would exceed supply and a shortage would arise.
There is a surplus if quantity supplied exceeds quantity demanded. It usually occurs when price is above equilibrium price.
When quantity supplied is equal to quantity demanded, there's equilibrium.
I hope my answer helps you
Answer:
C. The current price is below its equilibrium price.
Explanation:
Shortage occurs in a market when quantity demanded is greater or exceeds quantity supplied. That is Qd > Qs. Or when the quantity supplied is lower or less than the quantity demanded. In other words are willing and able to buy the good at the current market price than what is currently available.
When shortage occurs, it indicates that the market is not in equilibrium. If the market price is below the equilibrium price, quantity supplied is less than quantity demanded, creating a shortage.
