Question

question 6 (10 points)
at the current market price for milk, the quantity of milk that sellers are willing and able to sell falls short of the quantity that buyers are willing and able to purchase. what is occurring in this situation?
the current market price must be equal to the equilibrium price of milk.
the current market price must be less than the equilibrium price of milk.
a surplus of milk results.
the current market price must exceed the equilibrium price of milk.

Explanation:

When quantity demanded exceeds quantity supplied, this is a market shortage. A shortage occurs when the current market price is below the equilibrium price, as lower prices encourage more demand and discourage supply. An equilibrium price would mean quantity demanded equals quantity supplied, a price above equilibrium causes a surplus (quantity supplied exceeds quantity demanded).

Answer:

The current market price must be less than the equilibrium price of milk.