Question

The cost of producing a new watch is $50. At a price of $100, watches will most likely be _____ and _____.

A. bought and purchased
B. supplied and demanded
C. made and produced

Answer 1

supply and demand

Step-by-step explanation:

Answer 2

B is the best answer of the choices. If it costs $50 to make a watch and they are selling for $100, then this makes $50 profit. Depending on the quality of the watch, there will be demand for the watches, so they will need to be supplied. However, if the price stays high and consumers’ demand drops, the price may have to be lowered.