A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags. The grocery chain demands more plastic bags than are available at the current market price. What will happen as a result of this?

Question

Quizplus · Accepted Answer

The increased demand for plastic bags will lead to a shortage in supply, which will drive up the market price for plastic bags. This is due to the basic law of supply and demand, which states that as demand increases and supply remains constant, prices will rise. There is no direct relationship between this event and an excess demand for groceries or paper sacks.

A Major Grocery Store Chain Switches from Bagging Groceries in Paper