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In Business / College | 2025-07-06

What happens when the demand for a product or service is greater than the supply at the current market price?
A. Surplus
B. Balance
C. Shortage
D. Equilibrium

Asked by trxpz16

Answer (2)

A shortage occurs when demand for a product or service is greater than the supply at the current market price. This often leads to an increase in prices as consumers compete for the limited availability. Equilibrium is reached when demand matches supply. ;

Answered by GinnyAnswer | 2025-07-07

The correct answer is C. Shortage occurs when demand for a product exceeds its supply at the current market price, often leading to price increases as businesses seek to balance the market. This scenario occurs when consumers wish to purchase more than what's available, necessitating adjustments in price and production levels until equilibrium is reached.
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Answered by Anonymous | 2025-07-11

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