Shaynacoolchick Shaynacoolchick

25-06-2024
Biology

Answered

Which situation would cause the price of a product to increase the most?

A. The demand rises while the supply falls.
B. Both the demand and supply rise.
C. Both the demand and the supply fall.
D. The demand falls while the supply rises.

Answer :

GinnyAnswer GinnyAnswer

25-06-2024

Final answer:

When demand rises while supply falls, it leads to a considerable increase in the price of a product.

Explanation:

A. The demand rises while the supply falls.

When demand rises while supply falls, it creates a situation where there is increased competition for the limited supply of the product, leading to a significant increase in price.

For example, during a sudden heatwave, the demand for air conditioners may surge while supply remains constrained, causing prices to skyrocket.

Learn more about Factors influencing price changes in economics here:

https://brainly.com/question/33964161

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