If the price of a good increases, other things held constant, then
A)more resources might flow into the production of the good.
B)the good has become less scarce than all other goods.
C)the relative price of the good decreases.
D)either buyers or sellers respond to the new price, whereas the opposite group does not.
E)the good becomes more desirable to consumers.

Question

Quizplus · Accepted Answer

As the price of a good increases, suppliers are likely to see it as an opportunity to increase their profits, which will attract more resources (such as labor and capital) into producing the particular good. This increase in resources should help to increase the supply of the good, which could help to bring the price back down to equilibrium.

If the Price of a Good Increases, Other Things Held