What Happens If There Is a Shortage of a Good

question 77

Multiple Choice

What happens if there is a shortage of a good at the current price?

• A) Sellers are producing more than buyers wish to buy.
• B) The market must be in equilibrium.
• C) The price is below the equilibrium price.
• D) Quantity demanded equals quantity supplied.

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Definitions:

Total Cost

The complete sum of all costs associated with producing or acquiring goods and services, including direct, indirect, fixed, and variable costs.

Responsiveness

The ability of a system or organization to quickly and effectively react to changes.

Carrier

A company that provides transportation services for goods, typically via land, sea, or air.

Mode of Transportation

Refers to the various methods or forms used to move people or goods from one place to another, such as by road, rail, air, or sea.