-Which of the following statements is correct?
A) A shortage and scarcity are the same thing.
B) A shortage occurs when the quantity demanded is less than the quantity supplied at a price below the market clearing price.
C) A shortage occurs when the quantity demanded is greater than the quantity supplied at a price below the market clearing price.
D) A shortage occurs when the quantity demanded is less than the quantity supplied at a price above the market clearing price.

Question

-Which of the following statements is correct?
A) A shortage and scarcity are the same thing. 
B) A shortage occurs when the quantity demanded is less than the quantity supplied at a price below the market clearing price. 
C) A shortage occurs when the quantity demanded is greater than the quantity supplied at a price below the market clearing price. 
D) A shortage occurs when the quantity demanded is less than the quantity supplied at a price above the market clearing price.

Quizplus · Accepted Answer

A shortage occurs when the demand for a product exceeds the supply of it at a given price, typically below the market-clearing price where supply equals demand.

-Which of the Following Statements Is Correct