Answer to Question #288370 in Economics for nez

Question

A shortage exists in a market if

a) There is an excess supply of the good.

b) Quantity supplied exceeds quantity demanded.

c) The current price is below its equilibrium price.

d) There is no demand of the good.

e) All of the above are correct.

When the price of a good is higher than the equilibrium price,

a) A shortage will exist. b) Buyers desire to purchase more than is produced.

c) Sellers desire to produce and sell more than buyers wish to purchase.

d) Quantity demanded exceeds quantity supplied.

e) Quantity demanded is equal to quantity supplied

Answer 1

1. c) The current price is below its equilibrium price.
2. c) Sellers desire to produce and sell more than buyers wish to purchase.