When there is a shortage of 1,000 units of a particular good:
A) the price of the good will rise.
B) the price of the good will fall.
C) the quantity demanded of the good will equal 1,000 units.
D) there will be no change in the price of the good.

Question

Quizplus · Accepted Answer

Whenever there is an increase in demand or decrease in supply, there is a shortage of the particular good in the market. As a result, the demand of the good exceeds its supply. This situation leads to a rise in the price of the good. Hence, option A is the correct answer.

When There Is a Shortage of 1,000 Units of a Particular