Imagine that a major car company is producing fuel-efficient hybrid cars during a period of rising gas prices. As a result, dealerships are depleted of inventory, and customers remain on a waiting list. How can we best describe this phenomenon

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21-06-2022
Business

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Imagine that a major car company is producing fuel-efficient hybrid cars during a period of rising gas prices. As a result, dealerships are depleted of inventory, and customers remain on a waiting list. How can we best describe this phenomenon

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suchetasVT suchetasVT · Answer 1 · 2022-06-30T13:02:11+02:00

We can best describe this phenomenon as a shortage where there is high demand but the quantity supplied is low.

What is the understanding of the term "shortage"?

Scarcity is a situation wherein the amount demanded is extra than the amount furnished on the marketplace price.

There are 3 important reasons for scarcity growth in demand, lower supply, and authorities' intervention. Shortage, as its miles utilized in economics, must now no longer be confused with "scarcity."

Therefore, We can best describe this phenomenon as a shortage where there is high demand but the quantity supplied is low.

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