-In Figure 4-18, there would be a shortage of T-shirts if the price were
A)$10 and the market price will rise.
B)$8 and the market will tend toward equilibrium.
C)below $8 and the shortage persists.
D)between $8 and $6 and the shortage will get larger.

Question

-In Figure 4-18, there would be a shortage of T-shirts if the price were
A)$10 and the market price will rise. 
B)$8 and the market will tend toward equilibrium. 
C)below $8 and the shortage persists. 
D)between $8 and $6 and the shortage will get larger.

Quizplus · Accepted Answer

A shortage occurs when the price is set below the equilibrium price, leading to higher demand than supply. If the price is below $8 and this is below the equilibrium, the shortage will persist until prices adjust to reach equilibrium.

-In Figure 4-18, There Would Be a Shortage of T-Shirts