ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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separate the quantity supplied and demanded.
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raise the quantity demanded.
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equalize the quantity supplied and demanded.
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lower the quantity supplied.
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Detailed explanation-1: -When there is a shortage, producers raise prices in an attempt to. Equalize the quantity supplied and demand. In the price system of a market economy, prices are determined by. Gain a bigger share of the market.
Detailed explanation-2: -A shortage exists if the quantity of a good or service demanded exceeds the quantity supplied at the current price; it causes upward pressure on price. An increase in demand, all other things unchanged, will cause the equilibrium price to rise; quantity supplied will increase.
Detailed explanation-3: -If a shortage exists, price must rise in order to entice additional supply and reduce quantity demanded until the shortage is eliminated.
Detailed explanation-4: -The price will rise until the shortage is eliminated and the quantity supplied equals quantity demanded. In other words, the market will be in equilibrium again. As before, the equilibrium occurs at a price of $1.40 per gallon and at a quantity of 600 gallons.
Detailed explanation-5: -The supply schedule or supply curve indicates the supply of the commodity. Movement along the supply curve or change in quanity supplied: When the supply of a good rises due to rise in the price of the good alone, it is termed as an expansion of supply.