Which of the Following Best Describes the Process That Occurs

question 68

Multiple Choice

Which of the following best describes the process that occurs when the price of a good is below equilibrium?

• A) The excess demand for the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good.
• B) The excess supply of the good provides an incentive for buyers to offer a higher price. These higher prices encourage sellers to supply more of the good.
• C) The excess demand for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.
• D) The excess supply for the good provides an incentive for buyers to offer a lower price. These lower prices encourage sellers to supply less of the good.