Wastage Occurs If Higher Price Buyers Have to Be Turned

question 84

True/False

Wastage occurs if higher price buyers have to be turned away because the capacity has already been committed to lower price buyers.

---

Definitions:

Shortage

Occurs when the quantity demanded of a good exceeds its supply at a given price, leading to an unmet demand in the market.

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Equilibrium Price

is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Quantity Supplied

Suppliers' readiness and capability to sell a certain amount of goods or services at a specified price.