High prices maintained by a cartel usually make the cartel less successful because high price of the good:
A) leads to more conservation.
B) motivates demand to switch to substitutes of the goods.
C) encourages a search for new supplies.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

High prices maintained by a cartel can lead to conservation, motivate demand to switch to substitutes, and encourage a search for new supplies, all of which can undermine the cartel's success.

High Prices Maintained by a Cartel Usually Make the Cartel