Imagine you run a company that produces recycled paper products. The selling price for items you produce is going up, so you increase production. After a time, you see that you have increased production more than the market is actually demanding. Which of these is the most likely reason for less demand than you had estimated based on a higher price for your items?
A) Changing interest rates
B) Inflation
C) Default risk
D) Scarcity of alternatives
Correct Answer:
Verified
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