Ask Question
BusinessBusiness
28 August, 13:00

Based on the laws of supply and demand, which situation would lead to a shortage?

+5
Answers (1)
  1. 28 August, 13:04
    0
    The answer is: The price of a product falls below the equilibrium price.

    According to the laws of supply, the amount of supply would decrease as the price of product fall.

    This happen because the producers would obtain lesser amount of profit if they choose to sell the products with falling price. Since there would be less and less producers who willing do supply it, it eventually lead to a shortage.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Based on the laws of supply and demand, which situation would lead to a shortage? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is the future value if the payments are invested with the first national bank which offers semiannual compounding?
Answers (1)
Header Motor, Inc., paid a $3.91 dividend last year. At a constant growth rate of 7 percent, what is the value of the common stock if the investors require a 16 percent rate of return? The value of the common stock is $ nothing.
Answers (1)
Waylander Coatings Company purchased waterproofing equipment on January 6, 2015, for $320,000. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of $35,000.
Answers (1)
James invested some money at 7% interest. james also invested $75 more than 2 times that amount at 13%. how much is invested at each rate if james receives $1105.35 in interest after one year? (round to two decimal places if necessary.)
Answers (1)
The plaintiff in a criminal case is the government/district attorney. True False
Answers (1)
New Questions in Business
Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. Further, assume that during March machines were setup 20 times to make product X5.
Answers (1)
The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.
Answers (1)
Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520
Answers (1)
When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false
Answers (1)
What are the security and management issues concerning virtual offices, especially hooked up into large virtual networks?
Answers (1)
Home » Business » Based on the laws of supply and demand, which situation would lead to a shortage?
Sign Up Forgot Password?