When there is a shortage I. there is a tendency for price to increase.
II) there is an excess quantity demanded.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question

Quizplus · Accepted Answer

When there is a shortage, the quantity demanded exceeds the quantity supplied, leading to a tendency for price to increase. This leads to both a price increase (I) and excess quantity demanded (II). Therefore, both I and II are correct in this scenario.

When There Is a Shortage I