-Which of the Following Situations Could Generate a Shortage

question 290

Multiple Choice

-Which of the following situations could generate a shortage?

• A) Demand for a good increases, resulting in a new higher market clearing price.
• B) Demand for a good decreases, resulting in a new lower market clearing price.
• C) Demand for a good increases, but the price is not permitted to rise.
• D) Demand for a good decreases, but the price is not permitted to fall.

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Definitions:

Mutinies

Acts of open rebellion against the proper authorities, especially by soldiers or sailors against their commanding officers.

France

A country in Western Europe known for its rich history, cultural significance, and as a global center for art, fashion, and cuisine.

George Curzon

A British Conservative statesman who served as Viceroy of India and was influential in the foreign policy of the early 20th century, focusing on expansion and defense of the British Empire.

British Viceroy

A high official who ruled a country or a colony in the name of and as the representative of the monarch of the United Kingdom.