Which one of the following would NOT lead to higher prices?
A) strong consumer demand
B) higher gas prices
C) an increase in the supply of money
D) increases in the supply of food

Question

Quizplus · Accepted Answer

An increase in the supply of food would lead to a decrease in prices, as the market is flooded with more supply than demand. The other three options would all lead to higher prices. Strong consumer demand leads to higher prices due to scarcity and competition. Higher gas prices increase transportation costs and ultimately raise the prices of goods and services. An increase in the supply of money leads to inflation, which in turn raises prices.

Which One of the Following Would NOT Lead to Higher