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Which of the following scenarios will most likely result in comparatively low prices?

A) Increased demand and limited supply
B) Decreased demand and limited supply
C) Increased demand and abundant supply
D) Decreased demand and abundant supply

User Skyyy
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1 Answer

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Final answer:

Comparatively low prices are most likely in a scenario with decreased demand and abundant supply, which creates excess inventory that suppliers may sell at lower prices.

Step-by-step explanation:

Among the given scenarios, the one that will most likely result in comparatively low prices is Decreased demand and abundant supply (Option D). When there is a decrease in demand for a product, consumers are less willing to purchase it, and when there is an abundant supply, there is more of the product available than consumers want to buy. This combination puts downward pressure on prices, as suppliers may reduce prices to clear their excess inventory and attract buyers.

User Papr
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