A Shortage Creates a Situation That Forces Prices to ________

question 443

Multiple Choice

A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________.

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

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Definitions:

Innovation

The successful introduction and adoption of a new product or process; the economic application of inventions and marketing techniques.

New Product

A product that has been recently developed or introduced to the market.

Process

A series of actions or steps taken in order to achieve a particular end.

Private Owner

An individual or entity that exclusively owns the rights to a property, business, or asset, without governmental sharing or interference.