What is the definition of shortage in economics

Business

1 answer:

gtnhenbr [62]3 years ago

7 0

Answer:

A shortage, in economic terms, is a condition where the quantity demanded is greater than the quantity supplied at the market price. There are three main causes of shortage—increase in demand, decrease in supply, and government intervention

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Settlers from which european country frequently imposed a mandatory draft of indian labor for public projects?

Katena32 [7]

The united kingdom or the uk

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Harlamova29_29 [7]

For the answer to the question which of the following criteria is most descriptive of a private liberal arts college. The answer is multiple choice letter <span>D. Personal attention from instructors in smaller classes.

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Read 2 more answers

Ben says that "an increase in the tax on beer will raise its price." Holly argues that "taxes should be increased on beer becaus

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Answer:

B. Holly's statement is normative, but Ben's is positive.

Explanation:

Positive statements are based on objective deduction of what is, or was. It is based on facts. Ben's comment "an increase in the tax on beer will raise its price", is an example of positive statement.

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1.2 Which of the following is not a nominal account?

bonufazy [111]

Answer:

i can say is capital

Explanation:

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Select the correct answer from each drop-down menu.

LUCKY_DIMON [66]

Answer:

1. Technical improvements cause production costs to decline, which causes supply to increase and prices to decrease.

2. Decreased unemployment causes consumer incomes to increase which causes demand to increase and hence price to increase.

Explanation:

Demand refers to a consumer's desire to purchase a particular good or service at a given time for a specific price. Supply on the other hand, is the willingness of a producer to produce a particular good or service at a given time for specific price.

1. Production cost is a factor that influences supply. For example, cost of labor or raw material cost. When production costs fall, more products can be produced at a lesser cost. Hence'

The supply curve shifts right from S1 to S2.
This causes quantity supplied to increase from QS1 to QS2
And price to fall from P2 to P1. Please refer Diagram 1 in attachment.

2. When unemployment decreases, it means that more people are working in the economy and hence their incomes are also higher. This means there is a higher purchasing power and also higher demand for products. Hence,

The demand curve shifts from D1 to D2.
This causes quantity demanded to increase from QD1 to QD2
And price to increase from P1 to P2. Please refer Diagram 2 in attachment.

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