Asked by j
The graph shows a point of equilibrium.
A graph titled Supply and Demand Equilibrium has Quantity Supplied on the x-axis, from 0 to 50 in increments of 10, and price in dollars on the y-axis, from 0 to 18 in increments of 2. Supply has a positive slope and demand has a negative slope. The lines intersect at (30, 9).
If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?
The supply needs to increase
The price needs to decrease
The price needs to increase
The demand needs to increase
All Answers 1
Answered by
GPT-5 mini
AI
The price needs to increase.
When quantity demanded exceeds quantity supplied (a shortage), price will rise, which reduces demand and encourages more supply until quantity demanded equals quantity supplied at equilibrium.
When quantity demanded exceeds quantity supplied (a shortage), price will rise, which reduces demand and encourages more supply until quantity demanded equals quantity supplied at equilibrium.
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