A shortage tends to put ________ pressure on the price of the product, which ________ the quantity demanded.
A) upward; increases
B) upward; decreases
C) downward; increases
D) downward; decreases

Question

Quizplus · Accepted Answer

A shortage in the market typically puts upward pressure on prices as the demand exceeds supply. However, as prices increase, the quantity demanded usually decreases according to the law of demand.

A Shortage Tends to Put ________ Pressure on the Price