-If there is a shortage
A) fewer producers want to sell the product because it is too scarce.
B) consumers will drive up the price further.
C) firms will drive up the price to enhance profits.
D) the price will decline to the equilibrium level.

Question

-If there is a shortage
A) fewer producers want to sell the product because it is too scarce. 
B) consumers will drive up the price further. 
C) firms will drive up the price to enhance profits. 
D) the price will decline to the equilibrium level.

Quizplus · Accepted Answer

In a shortage, demand exceeds supply, prompting firms to raise prices to balance demand and supply and increase profits.

-If There Is a Shortage