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

  • Question 4a of 10 - Supply and demand

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: Which of the following describes a situation in which the price of a good would rise?
  • Answers:
  1. A new technology allows producers to increase supply very quickly.
  2. Scarce natural resources make it more difficult for producers to keep up with demand.
  3. Production is increased in order to catch up with a sudden rise in demand.
  4. Consumers start using less of a good because more substitutes are available.

The correct answer is: Scarce natural resources make it more difficult for producers to keep up with demand. When supply decreases relative to demand, prices rise.

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