18
RCMultiple Choice

Case Study: Starting a Business — Cumulative exam

Question 18 • 2102320-Economics HONORS - Edgenuity Teacher

When prices drop below the point where supply and demand meet, it results in

Answer
A
coordination.
B
disequilibrium.
C
equilibrium.
D
production.

Explanation

The point where supply and demand meet is the equilibrium price. When the price falls below that point, buyers want to buy more than sellers are willing to supply, creating a shortage. This imbalance is called disequilibrium, so the correct choice is “disequilibrium.”

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