Suppliers recognize there is a shortage in the market for their product when they notice that
A) the quantity supplied exceeds the quantity demanded.
B) the quantity demanded is falling.
C) inventories are falling.
D) production exceeds new orders for the product.
E) government economists announce a shortage exists.

Question

Quizplus · Accepted Answer

When inventories are falling, it indicates that the demand for the product is outpacing the supply, signaling a shortage in the market.

Suppliers Recognize There Is a Shortage in the Market for Their