Question
If a price is below the equilibrium price in a competitive market, then the market will push the price ________ and the quantity supplied ________.
Up; down
Down; up
Down; down
No change; no change
Up; down
Down; up
Down; down
No change; no change
Answers
GPT-4o mini
If a price is below the equilibrium price in a competitive market, then the market will push the price **up** and the quantity supplied **up**.
This happens because at a price below equilibrium, the quantity demanded exceeds the quantity supplied, creating a shortage. To eliminate this shortage, producers will raise their prices, and as prices rise, suppliers are incentivized to increase the quantity they are willing to supply.
So the correct answer is: **Up; up**.
This happens because at a price below equilibrium, the quantity demanded exceeds the quantity supplied, creating a shortage. To eliminate this shortage, producers will raise their prices, and as prices rise, suppliers are incentivized to increase the quantity they are willing to supply.
So the correct answer is: **Up; up**.