Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be
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Correct Answer: Option C
Explanation:
If the market price is below the equilibrium price, quantity supplied is less than quantity demanded, creating a shortage. The market is not clear. It is in shortage. Market price will rise because of this shortage.
If the market price is below the equilibrium price, quantity supplied is less than quantity demanded, creating a shortage. The market is not clear. It is in shortage. Market price will rise because of this shortage.