The price of a product rises if
A) demand for the product decreases.
B) supply of the product decreases.
C) there is a surplus of the product.
D) the price of a substitute product decreases.
E) the product is an inferior good and income increases.

Question

Quizplus · Accepted Answer

When the supply of a product decreases, there are fewer goods available in the market, which can lead to an increase in the price due to higher demand for the limited supply.

The Price of a Product Rises If