Price
$60
40
20
0
50
100
150
200
Quantity
Supply
Demand
Refer to the above diagram. A price of $20 in this market will result in:
a shortage of 100 units, and price will tend to rise.
a shortage of 100 units, and price will tend to fall.
equilibrium, and price will neither rise nor fall.
a surplus of 100 units, and price will tend to rise.