The price of a good will tend to rise when
A) there is excess demand for the good.
B) there is excess supply of the good.
C) demand for the good decreases.
D) the supply of the good increases.

Question

Quizplus · Accepted Answer

When there is excess demand for a good, it means that more people want the good than there is available supply, leading to an increase in price as consumers are willing to pay more to obtain it.

The Price of a Good Will Tend to Rise When