Suppose a Shortage for Good a Exists

question 445

Multiple Choice

Suppose a shortage for good A exists. Given this information, we know that

• A) the price of good A will tend to rise toward the equilibrium level.
• B) the price of good A will tend to fall toward the equilibrium level.
• C) a government price floor should be imposed above the current price so that the market can work more effectively.
• D) a government price ceiling should be imposed above the current price so that the market can work more effectively.

---

Definitions:

Courage to Take Risks

The bravery to engage in actions or decisions that involve uncertainty or potential for failure.

Entrepreneurship

The act of creating, designing, and running a new business, often characterized by innovation and risk-taking.

Positive Reinforcement

A technique used to encourage desired behaviors by offering rewards or positive outcomes when those behaviors are exhibited.

Desired Behavior

The specific actions or conduct that an entity, such as an organization, seeks to encourage or reinforce among its members.