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poizon [28]
3 years ago
10

If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Business
1 answer:
Jlenok [28]3 years ago
5 0

Answer:

The correct answer would be option C, The price needs to increase.

Explanation:

In order to maintain a balance or equilibrium, there should always be a balance between the quantity demanded and the quantity supplied. If quantity demanded exceeds quantity supplied, it means people are demanding the product more and the supply of that product is not meeting the demand. In this scenario when there is more demand of a product than supply, the price of the product should increase in order to create a balance between the quantity demanded and supplied, because it is the law of demand that when demand increases, the prices of the product also increases and vice versa. So to maintain the equilibrium, the price of the product should increase. In this way demand will decrease and will reach a point where demand will meet the supply of the product.

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