The price of a good will rise when:
A) there is a shortage of the good.
B) there is a surplus of the good.
C) demand for the good decreases.
D) the supply of the good increases.

Question

Quizplus · Accepted Answer

When there is a shortage of a good, it means that demand is greater than supply. In order to balance the market, the price of the good will rise, incentivizing suppliers to produce more and consumers to buy less, thus reducing the shortage.

The Price of a Good Will Rise When