If a Shortage Exists in a Market for a Good,the

question 140

True/False

If a shortage exists in a market for a good,the price of that good will tend to fall.
Level of Learning 1: Knowledge of key terms

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Definitions:

Unit Of Output

The measure of the quantity of a product or service produced by a firm, industry, or economic sector.

Competitive Industry

An industry in which no single firm has the power to influence the price of its product; there are many sellers and buyers, and products are largely homogeneous.

Limited Supply

A condition where the availability of a particular good is restricted in the market, often leading to increased prices.

Production Efficiency

A state in which the economy or a production process can no longer produce additional amounts of a good without lowering the production level of another product.