What happens when the market price is below the equilibrium price?

### Why this is right At a price below equilibrium, buyers want more than sellers offer. This shortage is excess demand and tends to put upward pressure on price. ### The concept Equilibrium is the price and quantity at which quantity demanded equals quantity supplied. A price above it creates excess supply, while a price below it creates excess demand. ### The other options - **B. Quantity supplied exceeds quantity demanded, creating excess supply**: This is the usual result of a price above equilibrium. - **C. Quantity demanded equals quantity supplied by definition**: Equality defines equilibrium, not every market price. - **D. Supply shifts automatically to the left**: Excess demand describes a difference between quantities at the current price, not a necessary shift in supply. ### Remember Below equilibrium means excess demand; above equilibrium means excess supply.