The existence of a shortage

Name: The existence of a shortage
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When there is a shortage, the demand for a product or service exceeds the available supply, leading to a higher price as buyers compete for the limited supply. Therefore, the correct answer is C - a shortage pushes the price up. A shortage is possible in a market economy, and it does not necessarily indicate that resources are being allocated efficiently.

The Existence of a Shortage