In a free market, a shortage of a good would cause the price in the market to:

Question

Quizplus · Accepted Answer

In a free market, when there is a shortage of a good, the price of the good tends to rise due to increased demand and limited supply. As the price rises, the quantity demanded typically falls because fewer people are willing or able to buy the good at the higher price. This mechanism helps to eventually eliminate the shortage as the market moves towards equilibrium.

In a Free Market, a Shortage of a Good Would