The price of a product falls if
A) demand for the product increases.
B) supply of the product decreases.
C) supply of the product increases.
D) demand for the product remains constant.
E) supply of the product remains constant.

Question

Quizplus · Accepted Answer

According to the law of supply and demand, if the supply of a product increases, the price will decrease because there is now more supply than demand. On the other hand, if demand increases, the price will typically increase since the demand for the product is greater than the available supply.

The Price of a Product Falls If