WebWhen the price is below equilibrium, there is excess demand, or a shortage —that is, at the given price the quantity demanded, which has been stimulated by the lower price, now exceeds the quantity supplied, which had been depressed by the lower price. WebWhen a shortage occurs, prices must be raised to restore the market to equilibrium. Prices Market disequilibrium occurs when the price is not right for that particular market. If the price is too low for that particular market, demand is encouraged and shortage occurs.
Market Equilibrium - Economics Online
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How is equilibrium restored after a shortage? - Answers
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