Answered

Select the correct answer.

When does the price of an item increase?

A. when supply is greater than demand
B. when demand is greater than supply
C. when the cost of manufacturing the item decreases



Answer :

GinnyAnswer

Final answer:

When demand exceeds supply, prices of items increase due to scarcity and competition among buyers.


Explanation:

When the demand is greater than supply, the price of an item increases due to the scarcity and competition among buyers to secure the limited quantity available. This increase in price incentivizes more suppliers to enter the market to meet the excess demand.


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