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:

Procedural Justice

The perception of fairness in the processes that lead to outcomes or decisions.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often within an organizational or governmental context.

Negative Inequity

A feeling that occurs when one perceives they are receiving less than they deserve compared to others.

Work Inputs

The effort, time, and resources invested by employees in their work tasks.