Figure 3-5
-Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?
A) The demand for digital music players is greater than the supply of digital music players.
B) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price.
C) The price of digital music players 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 increase in the equilibrium price of digital music players.

Question

Figure 3-5 
-Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?
A) The demand for digital music players is greater than the supply of digital music players. 
B) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price. 
C) The price of digital music players 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 increase in the equilibrium price of digital music players.

Quizplus · Accepted Answer

The Answer of Figure 3-5 
-Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?
A) The demand for digital music players is greater than the supply of digital music players. 
B) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price. 
C) The price of digital music players 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 increase in the equilibrium price of digital music players.

Figure 3-5 -Assume There Is a Shortage in the Market for Digital