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

  • Question 4c 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 fall?
  • Answers:
  1. A new technology allows producers to increase supply very quickly.
  2. Consumers start using more of a good because there are fewer substitutes.
  3. Scarce natural resources make it more difficult for producers to keep up with demand.
  4. Producers cannot make enough of a good when that good becomes popular suddenly.

The correct answer is: A new technology allows producers to increase supply very quickly. When supply increases relative to demand, prices fall.

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