What Occurs When Quantity Demanded of a Good Is Less

question 73

Multiple Choice

What occurs when quantity demanded of a good is less than the quantity supplied at the prevailing market price?  

• A) The price of the good tends to rise. 
• B) The price of the good tends to fall. 
• C) The demand curve shifts rightward until the surplus is eliminated. 
• D) The supply curve shifts leftward until the shortage is eliminated.

---

Definitions:

Discontinue

To stop doing or using something, either temporarily or permanently.

Milliliter

A unit of volume in the metric system equal to one-thousandth of a liter, commonly used to measure liquids in medicine and cooking.

QAM

An abbreviation often used in medical prescriptions that stands for "quaque ante meridiem," meaning every morning.

NPO

An abbreviation for "nil per os," a medical instruction meaning to withhold oral food and fluids from a patient.