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In Business / College | 2025-07-03

Shortages occur when the price is above its equilibrium level.
Select an option:
True
False

Asked by evasmith333

Answer (2)

Shortages occur when the price is below its equilibrium level, not above. Therefore, the statement that shortages occur when the price is above its equilibrium level is False. Understanding this concept is essential for grasping basic economic principles.
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Answered by Anonymous | 2025-07-04

A shortage occurs when the quantity demanded exceeds the quantity supplied, typically when the price is below its equilibrium level. Therefore, the statement that shortages occur when the price is above its equilibrium level is False. Understanding this concept is crucial for grasping basic economic principles. ;

Answered by GinnyAnswer | 2025-07-04

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