When a Shortage Occurs in the Market for a Good

question 19

Multiple Choice

When a shortage occurs in the market for a good, quantity

• A)demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.
• B)supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption.
• C)demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption.
• D)supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.

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Definitions:

Appellee

The party against whom an appeal is taken—that is, the party who opposes setting aside or reversing the judgment. Sometimes referred to as the respondent.

Appeal

The process of seeking a higher court’s review of a lower court’s decision for the purpose of correcting or changing the lower court’s judgment or decision.

Review

An evaluation or assessment of something for the purpose of informed decision-making or the consideration of its value, quality, or significance.

Restatements

Authoritative texts that aim to distill, clarify, and occasionally modernize the common law in the United States on various subjects.