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1 vote
What happens to the price of a good or service when the SUPPLY is HIGH and the

DEMAND is LOW?

A. The price stays the same.

B. The price goes down.

C. The price goes up.

User Vqf
by
5.6k points

2 Answers

3 votes

Answer:

B. The price goes down.

Step-by-step explanation:

If it was Supply is LOW and Demand is HIGH the it would be C. The price goes up

Plus, I took the test

Hope this helps :D

User Cuthbert
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5.9k points
2 votes

The correct answer is letter C.

The law of demand says that, as a rule, price and quantity required in a given market are inversely related.

In other words, the higher the price of a product, the less people are willing or can include (everything else unchanged).

When the price of a welfare, overall purchasing power decreases (income effect) and waste changes to cheaper goods (substitution effect).

Other factors may also affect demand.

User Digi
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6.0k points