Assume There Is a Shortage in the Market for Digital

question 184

Multiple Choice

Assume there is a shortage in the market for digital music players.Which of the following statements correctly describes this situation?

• A)The demand for digital music players is greater than the supply of digital music players.
• B)Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price.
• C)The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease.
• D)The shortage will cause a decrease in the equilibrium price of digital music players.

---

Definitions:

Posterior Probabilities

Probabilities that are revised and updated in light of new evidence or information, commonly used in Bayesian analysis.

Prior Probabilities

Initial probabilities assigned to outcomes or events before new evidence or data is considered.

Bayes' Law

A theorem describing the probability of an event, based on prior knowledge of conditions that might be related to the event.

Condo Sales

Refers to the transactions or activities involved in buying and selling condominium units.