Figure 4-19 -Refer to Figure 4-19.If There Is Currently a Shortage of a Shortage

question 94

Multiple Choice

Figure 4-19
-Refer to Figure 4-19.If there is currently a shortage of 20 units of the good,then the law of

• A)demand predicts that the price will rise by $2 to eliminate the shortage.
• B)supply predicts that the price will rise by $2 to eliminate the shortage.
• C)supply and demand predicts that the price will rise by $2 to eliminate the shortage.
• D)supply and demand predicts that the price will fall by $2 to eliminate the shortage.

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Definitions:

Caribbean

A region consisting of the Caribbean Sea, its islands, and the surrounding coasts, known for its diverse cultures, languages, and historical significance.

European Nations

Countries located on the continent of Europe, each with its distinct government, culture, and history.

French Trading

The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within France or between France and other countries.

Indians

Indigenous peoples of the Americas or people from the country of India, context-dependent.