The main reason for the high price of antiques is that
A)supply is relatively elastic and demand increases over time.
B)supply is relatively inelastic and demand increases over time.
C)demand is relatively elastic and supply increases over time.
D)demand is relatively inelastic and supply increases over time.

Question

Quizplus · Accepted Answer

The main reason for the high price of antiques is that their supply is relatively inelastic (it cannot increase because antiques are by definition old and not produced anymore) and demand for them increases over time. This combination of inelastic supply and increasing demand leads to higher prices.

The Main Reason for the High Price of Antiques Is