When a shortage exists in a market
A) the market clearing price is above equilibrium and market forces will cause the price to fall.
B) the quantity demanded is less than the quantity supplied at the existing price.
C) the current price is below the market clearing price and the price will rise.
D) the quantity supplied is greater than the quantity demanded at the current price.
C
Economics
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The law of diminishing marginal returns
A) implies that the marginal product of labor must fall. B) requires using superior technology to increase output. C) means that total output will always fall. D) None of the above.
Economics
A rise in MPC makes the total expenditures (TE) curve __________ and __________ the multiplier
A) steeper; raises B) steeper; lowers C) flatter; raises D) flatter; lowers
Economics