Assume There Is a Shortage in the Market for Digital

question 157

Multiple Choice

Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?

• A)The demand for digital music players is greater than the supply of digital music players.
• B)Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price.
• C)The price of digital music players will rise in response to the shortage; as the price rises, the quantity demanded will increase and the quantity supplied will decrease.
• D)The shortage will cause an increase in the equilibrium price of digital music players.

Identify the impact of environmental policies on agriculture.

Understand the concepts and calculations involved in parity and its relevance to agricultural economics.

Understand the effects of agricultural price-support programs on consumer prices.

Recognize the components and purpose of farm subsidy programs.

---

Definitions:

Repossessed Vehicle

A vehicle taken back by a lender or seller from the buyer due to failure to make agreed payments.

Deficiency

The difference between the amount owed on a loan and the proceeds from the sale of the asset securing the loan, if the sale amount does not cover the loan balance.

Breach Of The Peace

An act that disturbs public tranquility or order.

Repossession

The process by which a creditor takes back property from the borrower due to failure to meet the repayment terms of the loan.