Answer:
There is a shortage of the product.
Explanation:
The market demand curve is downward sloping indicating a negative relationship with price. While the market supply curve is upward sloping indicating a positive relationship with price.
At the market equilibrium, both demand and supply are equal. At a price below the equilibrium level, the market demand is greater than supply. This causes a shortage in the economy.
Answer:
If the current price of a product is "below" the market equilibrium price, there is higher demand of this product.
Explanation:
This analogy follows the law of demand that says the higher the price the lower the demand while the lower the price just as it was stated in the above mentioned analogy results into higher demand
