If a Shortage Exists in a Market,then We Know That

question 22

Multiple Choice

If a shortage exists in a market,then we know that the actual price is

• A)above the equilibrium price,and quantity supplied is greater than quantity demanded.
• B)above the equilibrium price,and quantity demanded is greater than quantity supplied.
• C)below the equilibrium price,and quantity demanded is greater than quantity supplied.
• D)below the equilibrium price,and quantity supplied is greater than quantity demanded.

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Definitions:

Precise Recommendations

Detailed and specific suggestions or guidelines intended to achieve an objective or solve a problem.

Businesses

Organizations engaged in the provision of goods or services with the primary aim of making a profit.

Tradable Pollution

A system where companies or countries can buy or sell allowances to emit a certain amount of pollutants, with the aim of reducing overall emissions.

Cap-And-Trade

An environmental policy tool that limits greenhouse gas emissions by allocating emission allowances and permitting the trading of these allowances among emitters.