Which of the Following Occurs When a Shortage Occurs in the Market

question 90

Multiple Choice

Which of the following occurs when a shortage occurs in the market for a good?

• A) Quantity demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.
• B) Quantity supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption.
• C) Quantity demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption.
• D) Quantity supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.

Comprehend the shared ethical values across different generations.

Understand the concept of culturally contingent leadership behaviors.

Recognize gender differences in leadership styles.

Appreciate the organizational benefits of managing diversity effectively.

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Definitions:

Equity Instrument

A financial instrument indicating ownership in an entity, such as common stock or preferred shares, that represents a claim on the entity's residual assets after liabilities have been deducted.

Risk Management Strategy

A process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Net Exposure Basis

A method of measuring risk that combines both the gross positive and negative positions to determine an entity's overall exposure.

Equity Instrument

A type of financial security that signifies ownership in a company and represents a claim on part of the company's assets and earnings, such as stocks.