If market price is below equilibrium, which condition is expected?

### Why this is right Below equilibrium, buyers want more than sellers offer, so quantity demanded exceeds quantity supplied. The resulting shortage creates pressure for price to rise. ### The concept Equilibrium is the price at which quantity demanded equals quantity supplied. A price above equilibrium instead creates excess supply, because sellers offer more than buyers want at that price. Market pressure tends to move price toward the equilibrium level. ### The other options - **Excess supply, creating downward pressure on price**: this describes a price above equilibrium. - **Quantity supplied exceeds quantity demanded**: that is excess supply, not the shortage produced by a below-equilibrium price. - **No incentive for buyers or sellers to adjust**: a shortage gives buyers and sellers reasons to respond. ### Terms - **Excess demand**: a situation in which quantity demanded exceeds quantity supplied. ### Remember Below equilibrium means shortage and upward price pressure; above means surplus and downward pressure.