If, at the current price, there is a shortage of a good,

Question

Group of answer choices

sellers are producing more than buyers wish to buy.

the market can be in equilibrium.

. the price is below the equilibrium price.

All of the above answers are correct.

Answer 1

If there is a shortage of a good at the current price, it implies that the quantity demanded exceeds the quantity supplied. This typically occurs when the price is set below the equilibrium price.

Based on the options provided:

1. "sellers are producing more than buyers wish to buy." - This statement is incorrect; it describes a surplus, not a shortage.

2. "the market can be in equilibrium." - This is also incorrect; a shortage indicates that the market is not in equilibrium.

3. "the price is below the equilibrium price." - This statement is correct and is the main reason for the shortage.

Since only the third statement is correct, the most accurate option would not be "All of the above answers are correct."

The correct conclusion is that "the price is below the equilibrium price."