When There Is a Shortage, Sellers Have an Incentive to ______

question 173

Multiple Choice

When there is a shortage, sellers have an incentive to ______ their price and buyers have an incentive to offer a ______ price.

• A) increase; lower
• B) decrease; lower
• C) decrease; higher
• D) increase; higher

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Definitions:

Laws And Regulations

The body of rules, statutes, and guidelines enacted by legislative bodies or regulatory agencies governing behavior, activities, and standards in a society or industry.

Social Programs

Government or private initiatives designed to promote social welfare and improve living conditions for individuals and communities, often focusing on health, education, and income support.

General Systems Theory

An interdisciplinary study of systems as they relate to one another within a larger, more complex system.

Social Environment

The surroundings characterized by social relationships and culture that people operate within.