If the current price is less than the market clearing or equilibrium price

If the current price is less than the market clearing or equilibrium price, we would expect:
A)  a surplus.
B)  downward pressure on price.
C)  upward pressure on price.
D)  no change in the market price


What is the difference between a shortage and scarcity?
A)  Scarcity will always exist because choices must be made, but a shortage will only exist if the price is kept below the equilibrium level.
B)  Scarcity is a result of two or more alternative uses and will always exist, and quantities of supply and demand adjusting to flexible prices will create shortages.
C)  A surplus will exist when a good is scarce; a shortage merely implies that there isn't as much of something as people would like, which is nearly always the case.
D)  There is no distinction between the two. They are the same thing.


A shortage or a surplus can exist when the current price is equal to the equilibrium price.
True or False