ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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surplus
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shortage
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price floor
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price ceiling
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Detailed explanation-1: -Excess Demand: the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage.
Detailed explanation-2: -If demand exceeds supply, prices will rise. The law of supply and demand is based on two other economic laws: the law of supply and the law of demand. The law of supply says that when prices rise, companies see more profit potential and increase the supply of goods and services.
Detailed explanation-3: -shortage. when the quantity demanded of a good, service, or resource is greater than the quantity supplied. surplus. when the quantity supplied of a good, service, or resource is greater than the quantity demanded.
Detailed explanation-4: -When quantity demanded is greater than quantity supplied, the resulting shortage causes the price to fall. An increase in demand causes equilibrium price and quantity to rise, other things constant. The law of demand states that the quantity demanded of a good is inversely related to the price of that good.