A Shortage Occurs When

question 161

Multiple Choice

A shortage occurs when

• A) demand is greater than supply.
• B) the equilibrium price is too high.
• C) quantity demanded exceeds quantity supplied.
• D) quantity supplied exceeds quantity demanded.
• E) price is above the equilibrium pricE.

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Definitions:

Loan Endorsers

Individuals or entities that support or guarantee the repayment of a loan, thereby assuming the risk if the original borrower fails to repay.

Commercial Banks

Financial institutions that offer services such as accepting deposits, providing business loans, and offering basic investment products.

Credit Market

A financial market where borrowers can obtain funds from investors or lenders through the issuance of different types of debt instruments.

Prime Interest Rate

The interest rate that banks charge their most creditworthy customers, often used as a benchmark for setting rates on various types of loans and credit.