Figure 4-21 -A Shortage Will Tend to Occur at Which Price in at Which

question 106

Multiple Choice

Figure 4-21

-A shortage will tend to occur at which price in Figure 4-21?

• A)P₁
• B)P₂
• C)P₃

---

Definitions:

Price-quantity Schedules

Charts or tables that show the relationship between the prices of goods and services and the quantities supplied or demanded at those prices.

Demand

A schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time.

Consumer Income

The total earnings of a consumer, influencing their purchasing power and ability to buy goods and services.

MU/P

This term represents Marginal Utility per unit of Price, used in economics to calculate the additional satisfaction or utility gained from consuming one more unit of a good relative to its cost.