When There Is a Shortage of 1,000 Units of a Particular

question 75

Multiple Choice

When there is a shortage of 1,000 units of a particular good:

• A) the price of the good will rise.
• B) the price of the good will fall.
• C) the quantity demanded of the good will equal 1,000 units.
• D) there will be no change in the price of the good.

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Definitions:

Operating Lease

A leasing agreement allowing a lessee to use an asset, but the lease does not transfer ownership of the asset to the lessee.

Risk Of Obsolescence

The risk that a product or service will become outdated or no longer useful due to advancements in technology or changes in market preferences.

Income Tax

A tax imposed by the government on the income generated by individuals or entities, which varies according to the amount of income.

Land Improvements

Enhancements made to a plot of land, such as landscaping, fencing, or sidewalk construction, which increase the land's value and usefulness but may depreciate over time.