A Shortage Causes the

question 483

Multiple Choice

A shortage causes the

• A) demand curve to shift leftward.
• B) supply curve to shift rightward.
• C) price to fall.
• D) price to rise.

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Definitions:

Auditory Tube

Also known as the Eustachian tube, it connects the middle ear to the nasopharynx and helps equalize pressure between the middle ear and the atmosphere.

Seasonal Inventory

Inventory stockpiled in anticipation of seasonal demand peaks to ensure adequate supply and optimal service levels.

Demand

The desire and willingness of consumers to purchase goods or services at a given price over a specific time period.

Capacity

Pertains to the highest amount of production a business can maintain for creating a product or delivering a service.