Assume There Is a Shortage in the Market for Digital

question 157

Multiple Choice

Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?

• A)The demand for digital music players is greater than the supply of digital music players.
• B)Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price.
• C)The price of digital music players will rise in response to the shortage; as the price rises, the quantity demanded will increase and the quantity supplied will decrease.
• D)The shortage will cause an increase in the equilibrium price of digital music players.

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Definitions:

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A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, a key greenhouse gas contributing to global warming.

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A combustible black or brownish-black sedimentary rock used primarily as a fuel in electricity generation.

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