True or false When price is below equilibrium price most con

True or false? When price is below equilibrium price, most consumers will be able to buy all the goods they want at that price and there will be a surplus.

Solution

A price which is below equilibrium price means less of a good will be produced. The quantity demanded will increase because more people will be willing to pay the lower price to get the good while producers will be willing to supply less, leading to a shortage. so, most consumers cannot purchase the good due to shortage and decreases net economic surplus as producer surplus decreases. Ans is False