When There Is a Shortage in the Market, the Quantity

question 280

Multiple Choice

When there is a shortage in the market, the quantity sold is

• A) equal to the quantity supplied.
• B) greater than the quantity supplied.
• C) less than the quantity bought.
• D) less than the quantity supplied.

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Definitions:

Indifference Curves

Graphical representations used in economics to show different combinations of two goods that give an individual equal satisfaction and utility.

Budget Constraints

The limits imposed on household choices by income, wealth, and product prices, determining the combination of goods and services they can afford.

Interest Rate

The percentage of a sum of money charged for its use, determining how much borrowers pay to lenders for loans or how much they earn on deposits.

Retirement

The act of leaving one's job or career and ceasing to work, typically due to age or health reasons, often accompanied by receipt of a pension or retirement savings.