Question

when the market price is below equilibrium, which condition exists?
surplus
shortage
equilibrium
excess supply

Explanation:

In a market, equilibrium price is where quantity demanded equals quantity supplied. When price is below equilibrium, quantity demanded (from lower price, more people want to buy) exceeds quantity supplied (producers supply less at lower price), creating a shortage. Surplus/excess supply is when price is above equilibrium (supply > demand), and equilibrium is when price is at the balance point.

Answer:

B. Shortage