If the price of a product does not change immediately,which of the following will cause an initial shortage of a product?
A)An increase in the demand or an increase in the supply.
B)A decrease in the demand or a decrease in the supply.
C)An increase in the demand or a decrease in the supply.
D)A decrease in the demand or an increase in the supply.
E)A change in the quantity supplied.

Question

Quizplus · Accepted Answer

An increase in demand or a decrease in supply will cause an initial shortage because the quantity demanded will exceed the quantity supplied. The price may eventually increase to bring the market back to equilibrium, but in the short term, there will be a shortage. The other options, including a change in quantity supplied, do not necessarily indicate a shortage.

If the Price of a Product Does Not Change Immediately,which