A Shortage

question 80

Multiple Choice

A shortage

• A)occurs when sellers are willing to sell more than consumers are willing to buy.
• B)can never occur in a market that is functioning properly and without interference.
• C)occurs when the market price is below the equilibrium price.
• D)is an example of market failure.
• E)causes a price decrease in a market.

---

Definitions:

Responsible Person Doctrine

A legal principle that holds an individual in a business or enterprise accountable for ensuring compliance with tax laws and regulations.

Acting in Good Faith

A principle of honesty and fairness in dealings, implying the absence of fraud, deceit, or intent to deceive in a transaction or interaction.

Leveraged Buyout (LBO)

A takeover-resistance strategy in which a group within the target corporation buys all the corporate stock held by the public, thereby turning the company into a privately held corporation.

Outstanding Corporate Stock

Shares of a corporation that have been issued and are currently owned by shareholders.