-A Shortage Will Tend to Occur at Which Price in Figure

question 22

Multiple Choice

-A shortage will tend to occur at which price in Figure 4-21?

• A)P₁
• B)P₂
• C)P₃
• D)There will be no shortage at the prices shown.

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Definitions:

Price Elastic

Describes a situation where the demand for a product changes significantly in response to a change in the product's price.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels, at a given point in time.

Price Elastic

A term referring to the responsiveness of the demand or supply of a good or service to changes in its price.

Harvest

The process or period of gathering in crops.