If a shortage exists in a market then:

Name: If a shortage exists in a market then:
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Question

Quizplus · Accepted Answer

If a shortage exists in a market, it means that the quantity demanded exceeds the quantity supplied at the current price. This will create competition among buyers, and the price will increase in the near future until it reaches the market equilibrium point where the quantity supplied equals the quantity demanded. Therefore, the best choice is D, which states that the price will increase in the near future.

If a Shortage Exists in a Market Then