The gap between demand and supply curve below the equilibrium price indicates
Answer Details
When the demand curve is higher than the supply curve at a given price level, it creates a gap between the two curves below the equilibrium price. This gap represents excess demand in the market, which means that buyers want to purchase more goods than what suppliers are willing to sell at that price. In other words, there are more buyers than there are goods available, and this leads to a shortage of supply in the market.
To achieve balance between supply and demand, the price needs to increase until the two curves intersect at a point where the quantity demanded equals the quantity supplied. This intersection point is known as the equilibrium price, which is the price where the market is in balance and there is no excess demand or supply.