Question

Excess demand will result in suppliers ________ prices, which encourages demanders to demand ________ .

a. lowering prices; less
b. raising prices; less
c. lowering; more

Answer 1

b

Step-by-step explanation:

Answer 2

The correct answer is letter "B": raising prices; less.

Step-by-step explanation:

If in a market there is excess demand, suppliers will take advantage of the situation to increase the price of their products. However, as per demand theory, if prices increase the quantity demanded will decrease, which will likely restore the demand to its equilibrium point.