A shortage causes the _____ a

Marketing Jan 09, 2021

A shortage causes the _____

a. price to fall.

b. price to rise.

c. supply curve to shift rightward.

d. demand curve to shift leftward.

Expert Solution

The correct option is b. price to rise.

Explanation: A shortage causes the prices to rise. Also, a shortage condition in the competitive market occurs when the demand of a product is exceeds the supply. Moreover, an increase in the demand, decrease in the supply, and an intercession from the government may affect the shortage condition.

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