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:

Condorcet Paradox

The Condorcet Paradox is a concept in voting theory where individual preferences cannot be aggregated into a consistent collective decision without creating contradictions.

Arrow's Properties

A set of criteria designed by economist Kenneth Arrow to assess the social welfare or collective decision-making functions, ensuring fairness, unanimity, and independence of irrelevant alternatives.

Pairwise Majority Voting

A voting system where candidates are compared in pairs, with each pair being voted on separately, to determine the most preferred option by majority decision.

Condorcet Paradox

A situation in social choice theory where collective preferences can be cyclic (i.e., not transitive), even if the individual preferences within the group are rational and transitive. It highlights the complexity of voting systems and decision making.