Assume there is a shortage in the market for smart phones.Which of the following statements correctly describes this situation?
A)The demand for smart phones is less than the supply of smart phones.
B)Some consumers will be unable to obtain smart phones at the market price and will have an incentive to offer to buy the product at a higher price.
C)The price of smart phones will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease.
D)The shortage will cause an decrease in the equilibrium price of smart phones.

Question

Quizplus · Accepted Answer

A shortage in the market occurs when the demand for a product exceeds its supply at the current market price, leading to some consumers being unable to purchase the product at that price. They may be willing to pay more to obtain the product, reflecting the situation described in option B.

Assume There Is a Shortage in the Market for Smart