The shortage occurs because:
A) the quantity supplied is more than the quantity demanded at this price.
B) of the black market.
C) the quantity supplied is less than the quantity demanded at this price.
D) the price floor was set by the government.

Question

Quizplus · Accepted Answer

A shortage occurs when the quantity supplied is less than the quantity demanded at a given price. This means that there are more buyers willing to purchase the good at that price, but there isn't enough supply to meet their demand. A shortage can occur for various reasons, such as unexpected increase in demand or shortage of raw materials, but it is not a result of a price floor (D) or black market (B).

The Shortage Occurs Because