Which of the following causes a shortage to become larger?

a. An increase in market price.
b. An increase in supply.
c. A decrease in price.
d. A decrease in demand.

c

Economics

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Within the Keynesian model, if the output of an economy is less than the full-employment level, then

a. a reduction in government expenditures will direct the economy back to full-employment equilibrium. b. a reduction in wage rates and resource prices will quickly restore full-employment equilibrium. c. a reduction in the real interest rate will soon restore full-employment equilibrium. d. output will tend to remain below full-employment capacity unless aggregate expenditures increase.

Economics

The Law of One Price holds true because

a. All farmers agree on a single price to sell their product b. Government price supports level the playing field c. Profit seeking individuals try to buy low and sell high d. Food is generally price inelastic

Economics