A Shortage Occurs Whenever

question 247

Multiple Choice

A shortage occurs whenever

• A) quantity demanded exceeds quantity supplied at the equilibrium price.
• B) price is less than equilibrium price.
• C) quantity demanded is less than quantity supplied.
• D) goods are scarce.
• E) some of the people who need the product are not willing and able to buy it at the equilibrium price.

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Definitions:

Equipment

Machinery or tools necessary for a particular activity, task, or for the operation of a business.

Secured Creditor

A creditor that has a legal interest, usually called a lien, in a debtor’s property, securing the debt and giving the creditor rights to the property if the debt is not repaid.

Collateral

Assets pledged by a borrower to secure a loan, which can be seized by the lender if the loan is not repaid.

Security Interest

A legal claim or lien on assets which secures the performance of an obligation, usually repayment of a loan.