Question

A shortage occurs when: demand for a good increases, causing an increase in the equilibrium price....

A shortage occurs when:
demand for a good increases, causing an increase in the equilibrium price.
demand for a good decreases, causing a decrease in the equilibrium price.
the price of a good is held above the equilibrium price.

the price of a good is held below the equilibrium price.

An increase in the price of a good will cause:
a rightward shift in the demand curve.
a leftward shift in the demand curve.
a movement up along a given demand curve.
a movement down along a given demand curve.
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Answer #1

A shortage occurs when there is excess demand of a particular good with respect to the supply. The demand exceeds supply and much of it remains unsatisfied which come to be known as shortage. The price of a good is below the equilibrium price. At this price the seller is ready to supply lesser than the demand.

An increase in the price of a good will cause upward movement along the same demand curve. The increase in price will result in lower quantity demanded of that particular commodity. The demand curve remains the same, only there is upward movement along the same demand curve. An increase in the price of a good will cause a movement up along a given demand curve.

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