-Which of the Following Situations Could Generate a Shortage

question 290

Multiple Choice

-Which of the following situations could generate a shortage?

• A) Demand for a good increases, resulting in a new higher market clearing price.
• B) Demand for a good decreases, resulting in a new lower market clearing price.
• C) Demand for a good increases, but the price is not permitted to rise.
• D) Demand for a good decreases, but the price is not permitted to fall.

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Definitions:

TRIN Statistic

A technical analysis indicator known as the TRading INdex (TRIN), which compares the number of advancing and declining stocks to their respective volume, aiming to gauge overall market sentiment.

Bearish Signal

An indication in technical analysis or market behavior suggesting that the price of an asset is likely to decline.

Bullish Signal

An indicator suggesting that the price of an asset is likely to increase, often leading investors to buy or hold positions.

Relative Strength

A momentum investing technique comparing the performance of a stock or asset to that of a broader market index to gauge its strength.