Why does the market price rise if it is below the equilibrium price?

When the price of a good &/or service is below its equilibrium level, the quantity demanded exceeds the quantity supplied. Since there are buyers who are in need of that good &/or service & are left without it, there is a shortage (aka excess demand).

Because of the shortage, buyers are willing to offer more than the prevailing price &/or sellers will realize they can charge more due to scarcity. The result is a higher price.

Whenever the price is below its equilibrium level during a shortage, price increases will always occur.

basics | supply | demand | equilibrium | shortage | surplus | graphs