A Shortage Causes the

question 483

Multiple Choice

A shortage causes the

• A) demand curve to shift leftward.
• B) supply curve to shift rightward.
• C) price to fall.
• D) price to rise.

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Definitions:

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Indifference Curve

A graphical representation showing combinations of goods among which a consumer is indifferent, indicating the same level of utility or satisfaction.

Budget Line

The graphical depiction of the trade-off between two goods, demonstrating the combinations that a consumer can afford based on their income and the goods' prices.

Marginal Utility

The change in total satisfaction received from consuming one additional unit of a good or service.