Question

When there is a shortage in a market, prices are likely to: rise because some buyers will offer to pay a higher price. fall because buyers do not wish to buy as much as sellers want to sell. fall because sellers are likely to reduce their production if prices rise. rise because the government will put a price ceiling in place?

Answer 1

The correct choice from the given options is "rise because some buyers will offer to pay a higher price."

A Market Shortage happens when there is overabundance demand that is amount requested is more noteworthy than amount provided. In this circumstance, shoppers won't have the capacity to purchase as a lot of a decent as they might want. In light of the request of the shoppers, makers will raise both the cost of their item and the amount they will supply. The expansion in cost will be excessively for a few buyers and they will never again request the item. In the interim the expanded amount of accessible item will fulfill different buyers. Eventually equilibrium will be come to.