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Suppose a good or service is highly desired, but the quantity supplied is limited.?

Suppose a good or service is highly desired, but the quantity supplied is limited. How does the competition among consumers affect profits for the selling firms?
A. Firms are granted tax reductions if they are producing what consumers demand.
B. Consumers bid up the price, which gives larger profits to the suppliers
.C. The opportunity cost of goods sold expands profitability.
D. Competing consumers will form cooperative purchasing companies and pay extra.

1 Answer

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B. Consumers bid up the price, which gives larger profits to the suppliers
User Mawaheb
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