Even when the demand for one good is high,the price of the good is also affected by supply.The textbook illustrates this by comparing the price of two items that were auctioned on the same day.Which of the following describes the results of the auction?
A)A letter written by Abraham Lincoln sold for a higher price than a letter written by John Wilkes Booth.
B)A letter written by Abraham Lincoln was sold for a higher price than a letter written by Adam Smith.
C)A letter written by John Wilkes Booth sold for a higher price than a letter written by Lee Harvey Oswald.
D)A letter written by John Wilkes Booth sold for a higher price than a letter written by Abraham Lincoln.

Question

Quizplus · Accepted Answer

The question states that the price of two items auctioned on the same day is being compared to illustrate the effect of supply on price. The two items being compared are letters, one written by John Wilkes Booth and one written by Abraham Lincoln. Both individuals are historically significant and their letters could potentially be of interest to collectors. However, John Wilkes Booth is infamous for assassinating Abraham Lincoln, which could make his letter more rare and valuable. Therefore, it is possible that the letter written by John Wilkes Booth sold for a higher price than the letter written by Abraham Lincoln, despite the latter's historical significance.

Even When the Demand for One Good Is High,the Price