A Shortage Will Occur If

question 141

Multiple Choice

A shortage will occur if:

• A) the quantity being supplied at a given price is less than the quantity demanded at that price.
• B) the quantity being supplied at a given price exceeds the quantity demanded at that price.
• C) there are not enough buyers in the market.
• D) there are only inexperienced firms in the market.

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Definitions:

Consumer Surplus

The contrast between what consumers are equipped and willing to dish out for a good or service against what they genuinely pay.

Total Utility

The overall satisfaction or utility a consumer derives from consuming a certain quantity of goods or services.

Philosopher-Economist

An individual who contributes to the fields of philosophy and economics, often analyzing the ethical implications of economic theories or decisions.

Jeremy Bentham

A British philosopher, jurist, and social reformer in the 18th century, known as the founder of modern utilitarianism.