which explains why the price indicated by p2 on the graph is lower than the equilibrium price?\nas prices…
which explains why the price indicated by p2 on the graph is lower than the equilibrium price?\nas prices fall, quantity demanded goes up.\nas prices fall, quantity demanded goes down.\nas prices fall, quantity demanded stays the same.\nas prices fall, quantity demanded disappears.
Answer
Answer:
A. As prices fall, quantity demanded goes up.
Brief Explanations:
In economics, according to the law of demand, there is an inverse relationship between price and quantity demanded. When the price is lower (like p2 compared to equilibrium price), quantity demanded increases.