If the market price is set at \$4, which is below the equilibrium price, how can you identify the shortage on a graph?

• A. By finding the area where the demand curve is above the supply curve at \$4.
• B. By finding the area where both curves are parallel.
• C. By finding the area where the supply curve is above the demand curve at \$4.
• D. By finding the intersection of the supply and demand curves.

Answer: (A)