Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A recent study determined that, at the current market price, there is a shortage of widgets in Pleasantville. If the market for widgets is allowed to adjust, the ultimate result will be:

Sagot :

Parrain

Answer: b. an increase in price and an increase in the quantity supplied

Explanation:

According to the law of supply and demand, when the supply of a good is low, the price should be high to reflect this scarcity. In this case, the supply of widgets is low, hence the shortage.

If the market was able to freely adjust, the price of widgets would increase to reflect this shortage. When supplies see this increase, they will increase their supply so as to earn more profits.

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.