If There Is a Shortage in a Free Market, Then

question 328

Multiple Choice

If there is a shortage in a free market, then

• A) consumers will offer to pay a lower price for the good, and the price will fall toward the equilibrium level.
• B) consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.
• C) suppliers will decrease their output to match demand.
• D) suppliers will accept any price below equilibrium.

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Definitions:

Meaning

The significance or interpretation of a thing, symbol, or event; the underlying purpose or concept.

Rhesus Factor

A protein substance on the surface of red blood cells that can cause immune response differences, significant in blood transfusion and pregnancy.

Abbreviation

A shortened form of a word or phrase, used to simplify writing and speech.

Pneumocystis Carinii Pneumonia

A severe form of pneumonia caused by the fungus Pneumocystis jirovecii, particularly affecting individuals with weakened immune systems.