If price is below equilibrium:
A. Quantity supplied exceeds quantity will occur.
B. Quantity demanded will occur.
C. The income and substitution effects will cause rise.
D. Demand will increase
E. Demand is too low for equilibrium
A. Quantity supplied exceeds quantity will occur.
B. Quantity demanded will occur.
C. The income and substitution effects will cause rise.
D. Demand will increase
E. Demand is too low for equilibrium
Answers & Comments
Answer: it's letter C and A for me I share this lang for you thanks
Explanation:
under the downy of systems are the. Quantity of supplied exceedsdem demanded for the subscription effect will be demand low of equilibrium
- Option E is partially correct because a price below equilibrium indicates that demand is too high relative to supply, but it does not provide a complete explanation of the situation.
- Option B is correct because a price below equilibrium will stimulate consumer demand, leading to an increase in the quantity demanded.