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When price is set below equilibrium, this will lead to

When price is set below equilibrium, this will lead to
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A An increase in the quantity supplied
  • B A new equilibrium
  • C A decrease in the quantity supplied
  • D A fall in price
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.

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