Question

In the long run if there is a shortage in the market for a product, the guiding (allocation) function of price can be expected to cause A) an increasing shift in the demand for the product. B) a decreasing shift in the demand for the product. C) an increasing shift in the supply of the product. D) a decreasing shift in the supply of the product.

Answer 1

Answer:

depends on the product. if product is about to sell out which means is in high demand. until new stock arrives there will be increase in price and more stock will be produced and sent