The Shortage Occurs Because

question 39

Multiple Choice

The shortage occurs because:

• A) the quantity supplied is more than the quantity demanded at this price.
• B) of the black market.
• C) the quantity supplied is less than the quantity demanded at this price.
• D) the price floor was set by the government.

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Definitions:

Puffing

Exaggerated or superlative comments or opinions made by sellers regarding the quality or desirability of their goods, not considered legally binding promises.

UCC

A complete legislative framework, the Uniform Commercial Code, oversees all commercial dealings within the United States.

Negotiate

The process of discussing terms to reach a mutual agreement in transactions, contracts, or disputes.

Implied Warranty

A legal assumption that the goods sold meet certain quality standards, including that they are fit for the standard purposes for which such goods are sold.