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In your own words, respond to the following question. Write detailed sentences to show how you follow the discussion forum guidelines.

1. Where was the equilibrium price and quantity before the shortage started?



Answer :

GinnyAnswer

Final answer:

In economics, the equilibrium price and quantity occur where demand equals supply in a market, with no shortage or surplus.


Explanation:

In economics, the equilibrium price and quantity refer to the point where the quantity demanded equals the quantity supplied in a market. Before a shortage occurs, the equilibrium price and quantity are where the demand and supply curves intersect.

For example, if the equilibrium price is $2 per unit and the equilibrium quantity is 100 units, this is where the market is in balance.

At this point, there is neither a surplus nor a shortage of the product.


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