11
practice testMultiple Choice

Practice Test

Question 11 • Economics

If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Answer
A
The supply needs to increase.
B
The price needs to increase.
C
The demand needs to increase.
D
The price needs to decrease.

Explanation

When quantity demanded exceeds quantity supplied, there is a shortage: buyers want more of the good than sellers are offering. The shortage puts upward pressure on the price, which encourages sellers to supply more and buyers to demand less until the quantities match. Therefore, the price needs to increase.

AI-written and checked against the verified answer.

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