When a Shortage Occurs, There Is a Tendency for the

question 61

Multiple Choice

When a shortage occurs, there is a tendency for the

• A)quantity supplied to decrease.
• B)price to remain unchanged.
• C)price to fall.
• D)quantity demanded to increase.
• E)price to rise.

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Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and operational efficiency of the business.

Salvage Value

The forecasted value at which an asset can be resold once it's no longer useful.

Cash Inflows

The total amount of money being transferred into a company, typically from operational, investment, and financing activities.

Investment Projects

Initiatives undertaken by a business or individual involving the allocation of resources with the expectation of future benefits, such as profits or interest.