Why Does a Shortage That Occurs Under a Binding Price

question 52

Multiple Choice

Why does a shortage that occurs under a binding price ceiling decrease over time?

• A) Demand becomes more elastic.
• B) Demand becomes more inelastic.
• C) Demand and supply both become more elastic.
• D) Demand and supply both become more inelastic.
• E) Demand becomes more elastic, but supply becomes more inelastic.

---

Definitions:

Exclusive Possession

The right of an individual or entity to use property without interference from others.

Unauthorized Entry

Accessing a physical or digital property without permission, often associated with trespassing or illegal intrusion.

Reversion Interest

A future interest in real estate that reverts back to the original owner, or their heirs, once a particular condition has been met or a specified time has passed.

Prescriptive Easement

A right to use someone else's land, acquired by continuous and open use over a period as prescribed by law.