If a shortage exists in a market. we know that the actual price is


e é 35. If a shortage exists in a market, then we know that the actual price is above the equilibrium price, and quantity sup
36. Consider the following four statements, and which one do you think would be true? The demand of mint-flavored toothpaste

Answer

35) In case of shortage in the market, the actual price is below the equilibrium price. As, there is shortage, it clearly means than supply is less and demand is more. Thus the correct option is:

(c) below the equilibrium price and the quantity demanded is greater than the quantity supplied.

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