The increase in the demand for hybrid vehicles caused manufacturers of hybrid vehicles to increase prices by 20%. This is an example of

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Quizplus · Accepted Answer

The increase in prices due to an increase in demand is an example of the operations of supply and demand. This is not necessarily inflation or sustained inflation, as it may only be a temporary change in prices for a specific product. Deflation, which is the decrease in general prices throughout the economy, is not relevant to this scenario.

The Increase in the Demand for Hybrid Vehicles Caused Manufacturers