If a Shortage Exists in a Market, the Natural Tendency

question 19

Multiple Choice

If a shortage exists in a market, the natural tendency is for:

• A) demand to increase.
• B) price to increase.
• C) quantity supplied to decrease.
• D) no change in the market.

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Definitions:

Consumer's Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive from the purchase.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or foreign bodies.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or to block out sound for concentration or sleep.