What Happens When There Is a Shortage in a Market

question 268

Multiple Choice

What happens when there is a shortage in a market?

• A)There is downward pressure on price.
• B)There is upward pressure on price.
• C)The market could still be in equilibrium.
• D)The price must be above equilibrium.

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Definitions:

General Ledger

The primary accounting record of a company that contains all the financial accounts and transactions of a business.

Total Credits

The total value of all credit entries recorded in an accounting period, representing income or liabilities.

Post-Closing Trial

A trial balance prepared after all closing entries are made, serving to test the equality of debits and credits as a final check at the end of an accounting period.