If the market price is £10:

the consumers’ willingness to pay is lower than the sellers’ willingness to supply.
there is a shortage in the market.Correct
sellers will discount the price until the excess supply is sold.
the market is in equilibrium.

Explanation
At £10, the market price is below the equilibrium price. At that price, consumers demand a higher quantity than what sellers are willing to supply. As a consequence, there is a shortage in the market.