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Exhibit 3-2 -If Price Is Below Equilibrium

Question 72

Multiple Choice

Exhibit 3-2 Exhibit 3-2 -If price is below equilibrium, A) demand is too low for equilibrium. B) the income and substitution effects will cause the price to rise. C) quantity supplied exceeds quantity demanded, and a shortage exists. D) quantity demanded exceeds quantity supplied, and a shortage exists. E) demand will increase.
-If price is below equilibrium,


A) demand is too low for equilibrium.
B) the income and substitution effects will cause the price to rise.
C) quantity supplied exceeds quantity demanded, and a shortage exists.
D) quantity demanded exceeds quantity supplied, and a shortage exists.
E) demand will increase.

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