What Happens When There Is a Shortage in a Market

question 300

Multiple Choice

What happens when there is a shortage in a market?

• A) There is downward pressure on price.
• B) There is upward pressure on price.
• C) The market is operating above the equilibrium level.
• D) The price must be above equilibrium.

---

Definitions:

Joint Probability Table

A tabular representation that shows the likelihood of different combinations of two or more variables occurring.

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments.

Financial Consultants

Professionals who provide expert advice on financial planning and management, including investments, insurance, taxes, and retirement.

Balanced Portfolio

An investment approach that aims at balancing risk and reward by diversifying assets across various financial instruments.