Home / Aptitude Tests / Economics / The hoarding of good...

The hoarding of goods is usually experienced when

...

The hoarding of goods is usually experienced when

A.

Supply is greater than demand

B.

The market price above the equilibrium price

C.

Demand is greater than supply

D.

Excess demand is greater than excess supply

Correct answer is C

In economics, hoarding is the deliberate effort made by a seller or a producer of a particular commodity to create artificial scarcity of such commodity by keeping it locked up in his store and not releasing it to the market to circulate for sales.

This is done when the demand for such a good is high leading to high prices. Most of the fuel scarcity issue experienced in Nigeria is caused by hoarding.