Any price below the equilibrium price will lead to
- increase in supply
-
excess demand
- equality of demand and supply
- decreases in demand
The correct answer is: B
Explanation
Any price below the equilibrium price will lead to excess demand with decrease in supply. This is so because, people generally buy more of a commodity when the price is low while suppliers will want to supply more when the price is high. Hence, for a price set below equilibrium, suppliers will cut back on producing more of that commodity while demand will be high.