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3 March, 05:59

If a shortage exists in a market, the natural tendency is for:

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  1. 3 March, 09:07
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    A shortage in the marketing occurs if the quantity demanded is larger than the quantity supplied. If a shortage exists in a market, the natural tendency is for the price to increase. Gas is a great example if price increases when there is a shortage within the market. Whenever there is a shortage in gas we often see the price of gas driving upwards of cents to dollars more per gallon. This happens because the market is aware that even with the increase in price, people still need purchase gas to live daily life. Therefore, as it's rising in price, people are still purchasing and likely it will keep climbing for a little while.
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