If the supply of a pair of jeans is less than what would meet customer demand, what would likely happen to the average market price of the jeans?

A.
The average market price is lower than the equilibrium point.

B.
The average market price is higher than the equilibrium point.

C.
The average market price is exactly the same as the equilibrium price.

D.
The spot price and the average market price are the same.
B. The average market price is higher than the equilibrium point.
B.
The average market price is higher than the equilibrium point.
To figure out what would likely happen to the average market price of the jeans if the supply is less than customer demand, we need to understand the concept of supply and demand in economics.
In a market, the equilibrium price is determined by the point where the quantity supplied equals the quantity demanded. This is the price at which buyers are willing to pay for a certain quantity of jeans, and sellers are willing to supply that quantity. At the equilibrium price, there is no excess supply or excess demand.
In this scenario, the supply of jeans is less than what would meet customer demand. This means that there is a shortage of jeans in the market, as the quantity supplied is not enough to satisfy the quantity demanded by customers.
When there is a shortage in the market, it usually leads to an upward pressure on price. This happens because customers are willing to pay more to secure the limited quantity of jeans available. Sellers may take advantage of this situation and raise the average market price of the jeans. As a result, the average market price is likely to be higher than the equilibrium price.
So, the correct answer is B. The average market price is higher than the equilibrium point.