A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________.
A) decrease; increase
B) decrease; decrease
C) increase; decrease
D) increase; increase

Question

Quizplus · Accepted Answer

A shortage in the market typically leads to higher prices as the demand exceeds the supply. Conversely, a surplus, where supply exceeds demand, tends to lead to lower prices as sellers try to offload excess inventory.

A Shortage Creates a Situation That Forces Prices to ________