When There Is a Shortage, Sellers Have an Incentive to ______

question 173

Multiple Choice

When there is a shortage, sellers have an incentive to ______ their price and buyers have an incentive to offer a ______ price.

• A) increase; lower
• B) decrease; lower
• C) decrease; higher
• D) increase; higher

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Definitions:

Pre-Filing Period

The timeframe before formal legal documents are filed with the court or a regulatory body, often relevant in bankruptcy, litigation, and regulatory compliance contexts.

Prospectus

In securities law, a document given to prospective purchasers of a security that contains information about an issuer of securities and the securities being issued.

Registration Statement

A document submitted to securities regulatory authorities that provides details and disclosures about a company's securities offering to the public.

Suitability Letter

A document provided by a financial advisor, confirming that an investment is appropriate for a client's situation.