If the supply of a pair of jeans is less than what would meet customer demand, what would likely happen to the average market price of the jeans?
A.
The average market price is higher than the equilibrium point.
B.
The average market price is exactly the same as the equilibrium price.
C.
The average market price is lower than the equilibrium point.
D.
The spot price and the average market price are the same.
1 answer
A. The average market price is higher than the equilibrium point.
1 answer