When the price line is below the equilibrium point what will occur?

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1042735

2026-03-06 04:05

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When the price line is below the equilibrium point, there will be a shortage in the market, as the quantity demanded will exceed the quantity supplied at that price level. This imbalance prompts sellers to raise prices due to increased competition among buyers. As prices rise, the quantity demanded typically decreases while the quantity supplied increases until the market reaches equilibrium again.

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