Question

In a market economy, prices are determined by supply and demand. How is the price of an item affected if the supply goes down? A. The price of the item will go down. B. The price of the item will stay the same. C. The price of the item will go up. D. The price will go down, but then it will go up.

Answer 1

C: The price will go down.

Step-by-step explanation:

This is because there will be less demand since there is so less of them left.

Answer 2

As the price of an item goes up, the supply

✔ increases

.

As the price of an item goes up, the demand

✔ decreases

.

As the price of an item goes down, the supply

✔ decreases

.

As the price of an item goes down, the demand

✔ increases

.

Step-by-step explanation: