The Figure Given Below Shows the Demand and Supply Curves

question 14

Multiple Choice

The figure given below shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves.Figure 3.5
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-When will a shortage occur in a market?

• A)When the actual price is lower than the equilibrium price
• B)When quantity supplied is greater than the equilibrium quantity
• C)When the quantity that consumers are willing and able to purchase decreases
• D)When the quantity available at zero price is insufficient to meet demand
• E)When a price floor is set in the market

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Definitions:

Directors

Members of a company's board who are elected by shareholders to make important decisions regarding the company's management and policies.

Officers

Executive members of an organization responsible for managing its day-to-day operations and making significant business decisions.

Due Care

The level of judgment, caution, and attentiveness expected of a reasonable person.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting harm.