Multiple Choice
A market segment that is large enough or profitable enough to serve is ________.
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3. The Market Forces of Supply and Demand
Market Equilibrium
Multiple Choice
Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
A
the quantity demanded at that price
B
zero
C
the quantity supplied at that price
D
the equilibrium quantity
Verified step by step guidance1
Understand the concept of shortage in a market: A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.
Recall that when there is a shortage, sellers cannot meet the entire demand because they have limited supply available.
Recognize that the actual quantity sold in the market cannot exceed the quantity supplied, since sellers cannot sell more than they have.
Therefore, the quantity sold at the price where there is a shortage will be equal to the quantity supplied at that price, not the quantity demanded.
This explains why the quantity sold during a shortage equals the quantity supplied, as the supply limits the amount of goods exchanged.
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