If There Is a Shortage in a Free Market, Then

question 328

Multiple Choice

If there is a shortage in a free market, then

• A) consumers will offer to pay a lower price for the good, and the price will fall toward the equilibrium level.
• B) consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.
• C) suppliers will decrease their output to match demand.
• D) suppliers will accept any price below equilibrium.

Calculate the surplus or deficiency apportioned to shareholders in the event of liquidation.

Differentiate between ordinary, preferential, and deferred creditors in the context of company liquidation.

Identify and differentiate between joint ventures and joint operations based on their structure and contractual rights and obligations.

Understand the requirements for entering into joint arrangements, including risk management, access to new technology or markets, and control over the arrangement.