Question

Question 7(Multiple Choice Worth 3 points)

(06.01 LC)

If the supply of a product increases, then

the price decreases
the price increases
the demand increases
the demand decreases

Answer 1

If the supply of a product increases, then

The price decreases.

Explanation: The longer a product is in supply the fewer people are going to buy it, since fewer people are buying, that means that companies have to lower the price so that customers want to buy there prodcut again!

Answer 2

If the supply of a product increases, then

The price decreases.

Step-by-step explanation:

The longer a product is in supply the less people are going to buy it, since less people are buying, that means that companies have to lower the price to get consumers to start buying it again.

Hope that answers your question. :)