If a Shortage Exists in a Market, What Do We

question 145

Multiple Choice

If a shortage exists in a market, what do we know?

• A) The actual price is below equilibrium price, and quantity demanded is greater than quantity supplied.
• B) The actual price is above equilibrium price, and quantity demanded is greater than quantity supplied.
• C) The actual price is above equilibrium price, and quantity supplied is greater than quantity demanded.
• D) The actual price is below equilibrium price, and quantity supplied is greater than quantity demanded.

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Definitions:

Acres

A unit of land area used in the imperial and US customary systems, equivalent to 4,840 square yards or 43,560 square feet.

Rent

Payment made to use or occupy land, a building, machinery, or other assets for a specified period under a lease agreement.

MRP

An abbreviation for Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a factor, such as labor or capital.

Workers

Individuals engaged in a profession or activity, especially one involving manual or physical labor, contributing to the production of goods and services in an economy.