Asked by Sarah-Michele Newton on Apr 25, 2024
Verified
If the supply and demand curves intersect at a price of $14,then any price below that would result in:
A) a shortage.
B) a surplus.
C) equilibrium.
D) an increase in demand.
Surplus
An excess of production or supply over demand, often leading to lower prices or wasted resources.
Shortage
In economics, a shortage occurs when the demand for a product or service exceeds its supply at a given price, often leading to increased prices and queuing.
Equilibrium
A state in which demand and supply are balanced, often resulting in a stable market condition where there is no tendency for change until external factors intervene.
- Ascertain the specific conditions that precipitate a market surplus or shortage.
Verified Answer
JL
Jacqueline LanderosMay 02, 2024
Final Answer :
A
Explanation :
If the supply and demand curves intersect at a price of $14, it means that at that price the quantity supplied equals the quantity demanded. Any price below $14 would result in a shortage because the quantity demanded exceeds the quantity supplied at that price, leading to an excess demand.
Learning Objectives
- Ascertain the specific conditions that precipitate a market surplus or shortage.