Figure 11.2:
-In Figure 11.2,at which of the following price levels would a shortage occur?

Question

Figure 11.2: -In Figure 11.2,at which of the following price levels would a shortage occur? A) P₂ B) P₃ C) P₄ D) P₅

Quizplus · Accepted Answer

A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price. Without seeing Figure 11.2, we can't determine the specific conditions, but typically, a lower price (like P₂) would lead to a shortage because more people are willing to buy the product than the quantity available at that price. Higher prices tend to reduce demand or increase supply, moving towards equilibrium and reducing shortages.

Figure 11.2: -In Figure 11.2,at Which of the Following Price Levels Would