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Explain Why the Price of a Good Tends to Rise

question 36

Essay

Explain why the price of a good tends to rise when there is a shortage of the good.Give a hypothetical numerical example to help support your answer.


Definitions:

Human Capital Demand

Refers to the need or requirement for skills, knowledge, and abilities offered by individuals in the workforce to meet the strategic and operational goals of an organization.

Human Capital Supply

The availability of individuals in the workforce who possess the necessary skills, knowledge, and abilities to meet an organization’s needs.

Demand Forecasting

Demand forecasting is the process of estimating the future demand for goods or services based on historical sales data, market analysis, and other factors.

Human Capital

The abilities, understanding, and expertise held by a person or a group, considered in relation to their worth or expense to a company.

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