Select the correct answer.
According to the law of demand, what happens when price increases?

A.
quantity demanded increases
B.
quantity demanded decreases
C.
quantity supplied increases
D.
quantity supplied decreases
E.
no change in quantity supplied

In an emergency when a business has a shortage/scarcity of a product due to extremely high demand, less customers will buy it. And if they buy it, they're taking it for quite an interesting price, lol.

It's something businesses will use to intentionally decrease demand so that they do not run out of the product before they resupply.

INVERSE OF THIS ARGUMENT (EXTRA)

This is just to add to the understanding, this doesn't specifically correlate to the answer I gave you but, when a business has way too much supply of products since not enough customers are purchasing their item(s), they will decrease the price so that the demand grows higher.

Select the correct answer. According to the law of demand, what happens when price increases? A. quantity demanded increases B. quantity demanded decreases C. quantity supplied increases D. quantity supplied decreases E. no change in quantity supplied

Answer :

Other Questions

Select the correct answer.
According to the law of demand, what happens when price increases?

A.
quantity demanded increases
B.
quantity demanded decreases
C.
quantity supplied increases
D.
quantity supplied decreases
E.
no change in quantity supplied