What is likely to happen when demand for a commodity is high?
A) Consumers will try to find substitutes for the commodity.
B) The price of the commodity will rise.
C) Criminal behaviour increases with regard to the commodity (e.g., stealing).
D) The price of substitute commodities will increase.
E) All of these statements are correct.

Question

Quizplus · Accepted Answer

When demand for a commodity is high, several outcomes are likely: consumers may seek substitutes if the commodity becomes too expensive or scarce (A), driving up the price of the commodity itself (B) and potentially leading to increased criminal behavior related to the commodity, such as theft, due to its higher value (C). Additionally, as consumers look for alternatives, the demand (and thus the price) for substitute commodities may also increase (D), making all of these statements correct.

What Is Likely to Happen When Demand for a Commodity