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If the price of a commodity is fixed below equilibrium, this will lead to

If the price of a commodity is fixed below equilibrium, this will lead to
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Excess demand
  • B A decrease in price
  • C An increase in price
  • D Excess supply
Correct Answer: Option A
Explanation:
Just like the law of demand, the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded. When the prices of goods are set below equilibrium, it will invariably lead to high demand for the product.

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