If We Observe the Price of a Good in a Competitive

question 97

True/False

If we observe the price of a good in a competitive market rising, then we can conclude that there had been a shortage in the market.

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Definitions:

Agricultural Output

The total quantity of agricultural products produced and harvested in a given period.

Oil Embargo

An official ban on the trade of oil with a particular country or countries, often imposed by one or more countries as a form of economic sanction.

OPEC Countries

Member countries of the Organization of the Petroleum Exporting Countries, an intergovernmental organization that coordinates petroleum policies among its members to secure fair and stable oil prices.

Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level in an economy and the total output produced by firms.