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MrRa [10]
3 years ago
7

Suppose the market for cantaloupes is unregulated. That is, cantaloupe prices are free to adjust based on the forces of supply a

nd demand.
If a shortage exists in the cantaloupe market, then the current price must be (higher or lower)? than the equilibrium price. For the market to reach equilibrium, you would expect (persistent excess demand, seller to offer lower prices, or buyers to offer higher prices)?
Business
1 answer:
Fiesta28 [93]3 years ago
5 0

Answer:

If a shortage exists in the cantaloupe market, then the current price must be lower than the equilibrium price. For the market to reach equilibrium, you would expect buyers to offer higher prices.

Explanation:

As there is shortage in cantaloupe market ( Supply curve shifts to the left), there are not enough cantaloupe to sell to buyers.

So, buyers will compete for lower supply amount of cantaloupe by willing to pay higher price.

With the existence of supply shortage and buyers is willing to pay higher price, the equilibrium price will goes up, thus it will be higher than the current price.

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