A shortage creates pressure for the
A) price to fall.
B) price to sit still.
C) price to rise.
D) quantity demanded to increase.
E) quantity supplied to decrease.

Question

Quizplus · Accepted Answer

When there is a shortage, it means that the quantity demanded by consumers is greater than the quantity supplied by producers. This creates pressure for the price to rise as consumers compete to purchase the limited quantity of goods available.

A Shortage Creates Pressure for the