When the market is out of equilibrium at a price that is too low... O A. price rises, quantity supplied falls, and quantity demanded rises B. price falls, quantity supplied rises, and quantity demanded falls C. price rises, quantity supplied rises, and quantity demanded falls OD. price falls, quantity supplied falls, and quantity demanded rises
When the market is out of equilibrium at a price that is too low... O A. price rises, quantity supplied falls, and quantity demanded rises B. price falls, quantity supplied rises, and quantity demanded falls C. price rises, quantity supplied rises, and quantity demanded falls OD. price falls, quantity supplied falls, and quantity demanded rises
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a market, optimal level of output and equilibrium price is where quantity demanded equals quantity supplied. If market is out of equilibrium, market price will be above or below the equilibrium price due to which there is a need to move the price up or down to reach the equilibrium.
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