Which of the Following Occurs When a Shortage Occurs in the Market

question 90

Multiple Choice

Which of the following occurs when a shortage occurs in the market for a good?

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

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Definitions:

Basophils

Granulated white blood cells.

Immediate Hypersensitivity

A rapid allergic reaction that occurs within minutes of exposure to an allergen, mediated by IgE antibodies.

Chemical Mediators

Substances released by cells in the body that trigger inflammation, immune responses, or other physiological changes.

Quality Control

A process through which businesses seek to ensure that product quality is maintained or improved, preventing mistakes or defects in manufactured products.