Question

Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the pizza market, then the current price must be.............than the equilibrium price. For the market to reach equilibrium, you would expect................

Answer 1

Answer:

Lower

Buyers would offer higher prices

Explanation:

When a shortage occurs when Demand exceeds supply. Excess demand occurs when price is below equilibrium price and as a result suppliers reduce quantity supplied.

As a result of the shortage, buyers would offer higher prices. As a result of the higher prices, the quantity supplied would increase and equilibrium would be restored.

I hope my answer helps you