18.-104. If price is below equilibrium, demand is too low for equilibrium. a. b.

Question

18.-104. If price is below equilibrium, demand is too low for equilibrium. a. b. the income and substitution effects will cause the price to rise. c. quantity demanded exceeds quantity supplied, and a shortage exists. demand will increase. d. e. quantity supplied exceeds quantity demanded, and a shortage exists 19-102. When a shortage exists in a market, a. the actual price is lower than the equilibrium price. b. there is an excess quantity supplied. consumers increase the quantities they are willing and able to purchase. c. d. suppliers will quit producing until the shortage disappears. e. the actual price is greater than the equilibrium price. 20-36. Which of the following statements about seasonal unemployment is true? a. It results primanily from downturns in economic activity. b. It is likely to be associated with jobs that are affected by changes in the weather. c. It is the type of unemployment associated with discouraged workers. d. It is likely to be affected by changes in consumer preferences. e. It is difficult to predict because it involves all kinds of workers.

Explanation / Answer

18. C. Quantity demanded exceeds quantity supplied, and a shortage exists.

Explanation: When the market price is lower than the equilibrium price, the demand will be higher than the equilibrium demand. This is because the lower price will result in a higher demand. However, the supply will be less than the equilibrium supply as less number of suppliers would like to supply goods at a lower price. So, the demand will exceed the supply and there will be a shortage of goods.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.