Which of the following describes a situation in which the price of a good would rise?

A. A new technology allows producers to increase supply very quickly.

B. Scarce natural resources make it more difficult for producers to keep up with demand.

C. Consumers start using less of a good because more substitutes are available.

D. Production is increased in order to catch up with a sudden rise in demand.

Question

Social Studies

Weeks

1 December, 09:06

Which of the following describes a situation in which the price of a good would rise?

A. A new technology allows producers to increase supply very quickly.

B. Scarce natural resources make it more difficult for producers to keep up with demand.

C. Consumers start using less of a good because more substitutes are available.

D. Production is increased in order to catch up with a sudden rise in demand.

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Answers (1)

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Isabelle · Answer 1

Less resources make it more competitive to obtain the resources driving up the costs.

The expenses of manufacturing a product goes up the profits of this product will decrease for the business which would diminish the market attractiveness to investors creating less suppliers in this market.

Less supply means higher prices.

B