When a Shortage of a Good Is Present Due to a Price

question 187

Multiple Choice

When a shortage of a good is present due to a price ceiling,

• A) the amount supplied will be greater than the amount demanded.
• B) the quality of the good will generally improve.
• C) non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good.
• D) the demand for the product will increase and, thereby, eliminate the shortage.

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Definitions:

Machine Setups

Refers to the configuration and preparation of machines before production runs, which can affect efficiency and downtime.

Production Volume

The total quantity of goods or products manufactured or produced within a certain period of time.

Product Diversity

The range or variety of different products offered by a company to cater to various customer preferences or market segments.

Material Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal processes.