Question 16 P lag question Notyet answered Points out of 10

Question 16 P lag question Notyet answered Points out of 1.0 The principles of market forces predicts a shortage will lead to a price decrease. Select one: O True O False

Solution

The principle of market forces predicts a shortage that will lead to a price decrease

Solution: FALSE

Explanation: When the price is above the equilibrium price, it\'s a surplus (market price will decrease); if it is belowt hen a shortage (market price will increase).