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Question
When the actual price of a commodity is less than the equilibrium price, then equilibrium price ______
Options
Starts rising
Starts falling
Remains constant
First falls, then rises
MCQ
Fill in the Blanks
Solution
Starts rising
Explanation:
Demand rises when the real price of a commodity is lower than the equilibrium price. Consumers are willing to buy because of the high demand, but vendors are not. As a result, the price will climb.
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