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Nataly [62]
3 years ago
5

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

Business
1 answer:
Svetach [21]3 years ago
7 0

Answer:

Excess demand

Explanation:

The equilibrium price is the price at which demand equals supply.

If price is below equilibrium price, it means the price is lesser than the equilibrium price, therefore the quantity demanded would increase.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

If price is below equilibrium price, the quantity supplied would fall.

I hope my answer helps you.

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