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Examveda

When price is below equilibrium level, there will be

A. Surplus commodity in the market

B. Shortage of commodity in the market

C. Supply curve will shift

D. Demand curve will shift

Answer: Option B

Solution(By Examveda Team)

When price is below equilibrium level, there will be Shortage of commodity in the market.

This Question Belongs to Commerce >> Economics

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Comments ( 1 )

  1. Sumit Sangwan
    Sumit Sangwan :
    5 years ago

    explain it

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.