Which of the following correctly describes how price adjustments eliminate a shortage?
1 answer:
Answer:
As the price rises, the quantity demanded decreases and the quantity supplied increases.
Explanation:
When a shortage occurs, demand for a product is high and is not being matched by supply (supply is low).
So to bring demand down and increase supply, we need to increase the price.
According to the law of demand and increase in price results in a decrease in demand.
The law of supply states that when price increases there will be an increase in supply, making more goods available and eliminating shortage.
This is illustrated in the attached diagram.
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Intermediaries are often known as individuals who are known to be a link in the distribution process. They connect the various channel partners.
When an individual goes to a supermarket and selects a box of cereal from several choices of type, brand, and size, it is an example of the value of marketing intermediaries who provide an assortment.
There are four types of intermediary. They are
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- Retailers.
An organization often has many intermediaries in its distribution channel as they want.
Conclusively, amidst the types of intermediaries, helps provide several alternative to humans, so that we can choose base on our preference.
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