A company released a new video game system just in time for Christmas and many stores quickly sold out. Although the price of the system was only $350, they sold for over $2,000 on an online auction site. Which of the following economic principles best explains this event?

People respond to incentives because of self-interest.

The value of some objects increases relative to other objects.

The price of all goods will rise over time.

Competition among consumers increases prices.

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Khloe Murillo

31 October, 12:22

A company released a new video game system just in time for Christmas and many stores quickly sold out. Although the price of the system was only $350, they sold for over $2,000 on an online auction site. Which of the following economic principles best explains this event?

People respond to incentives because of self-interest.

The value of some objects increases relative to other objects.

The price of all goods will rise over time.

Competition among consumers increases prices.

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Travis · Answer 1

The answer would be 'competition among consumers increases prices' because if there was a limited amount, if someone really wants that game, they'd pay more than usual when supplies sold out.