A shortage
A)occurs when sellers are willing to sell more than consumers are willing to buy.
B)can never occur in a market that is functioning properly and without interference.
C)occurs when the market price is below the equilibrium price.
D)is an example of market failure.
E)causes a price decrease in a market.

Question

Quizplus · Accepted Answer

A shortage occurs when the quantity demanded exceeds the quantity supplied at the given market price. This means that there is excess demand for a product, causing some consumers to be unable to purchase it. In this situation, the market price is below the equilibrium price where quantity demanded and quantity supplied are equal. Therefore, choice C is the correct answer.

A Shortage