If a shortage exists in the market, the invisible hand will manipulate prices to maintain equilibrium by increasing prices and thereby reducing future quantity supplied. decreasing prices and thereby increasing future quantity supplied. increasing prices and thereby raising future quantity supplied. decreasing prices and thereby reducing future quantity supplied.

increasing prices and thereby raising future quantity supplied

Explanation:

To understand this question, we can use the help of a standard supply and demand plot.  At price 0 there’s a shortage because the quantity demanded is greater than the quantity supplied. This will generate prices to go up until it reaches the equilibrium price, which in turn will generate quantities to go up. Thus the gap between quantity demanded and supplied, the shortage, will disappear

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.