A shortage will develop when

A. the quantity supplied is greater than the quantity demanded.
B. the government provides subsides to producers.
C. the discovery of new technology reduces production costs.
D. the market price is below the equilibrium price.

Ans: D. the market price is below the equilibrium price.

Economics

You might also like to view...

At a higher nominal interest rate, the demand for money decreases

a. True b. False Indicate whether the statement is true or false

Economics

The cash that a bank keeps in its vault is called its:

A. reserves. B. deposits. C. loans. D. savings.

Economics