When price is set below equilibrium, this will lead to
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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, because producers will not be willing to supply more goods when the price being paid is too small thereby creating a shortage.
If the market price is below the equilibrium price, quantity supplied is less than quantity demanded, because producers will not be willing to supply more goods when the price being paid is too small thereby creating a shortage.