Question

A new Smart Phone comes on the market. It is determined that a shortage of the Smart Phone exists. This is MOST LIKELY because

A) Most consumers do not want the Smart Phone because it is too cheap.
B) The producer made too many Smart Phones and there is not enough demand.
C) Most consumers buy the Smart Phone because it is priced below the market price.
D) The producer did not make enough Smart Phones for all the people who want to buy one.

Answer 1

It is determined that the shortage of smart phone exists because Most consumers buy the Smart Phone because it is priced below the market price, Option C.

Step-by-step explanation:

Any product will be in shortage if the demand of the same is more. Demand of any product is usually more when the price falls than the market value.

It is not very likely that the producer will not make enough smartphones for the all the people who wish to buy, as per Option D. Neither if the demand is less, there will be shortage, as stated in option B. In this case, smart phones will be available more as demand is less than supply. As per Option A, consumers do not buy the cheap smart phone. In this case also, supply wil be more and there will be no shortage of the smart phone. Hence, the most apt statement from the given options is 'Option C'.