Question

If the market price ​'Pmkt​' is above the price ​'P0​', then quantity supplied is_________ equal to greater than quantity demanded and the market is in_________.

Answer 1

The quantity supplied at this level of price is less than the quantity demanded and therefore the market is in shortage situation.

Explanation:

If the current price of the market is above the price P0, then the level of the quantity supplied of the good is less than the level of quantity demanded of that good at this level. With the less quantity supplied, there will be a situation of shortage of the quantity of goods in the market.