Question

This holiday season, the hottest gift was a doll named Sparkle Princess. Within a few hours, all of the stores sold out their stock of this doll.

People who had been fortunate enough to buy a doll began to sell their dolls on the internet. Thousands of people logged on to try to buy one of
the few dolls that were being sold on the internet. What MOST likely happened with the internet sales?
O A. The price went down because the supply was low and the demand was high
ОВ. The price went up because the supply was low and the demand was high,
OC. The price went down because the supply was high and the demand was low.
D. The price went up because the supply was high and the demand was low.

Answer 1

The price went up because the supply was low and the demand was high.

Answer 2

Answer: B. The price went up because the supply was low and the demand was high,

Step-by-step explanation:

Based on the information given in the question, when there is a reduction in the supply of a particular good, the effect it has on the price is that there'll be a rise in the price of such good.

In this case, since there is a reduction in the supply of the good as a result of the fact that all the stores have sold out their stock, and it was been resold by some of the people that purchased it earlier, there'll be an increase in the price of the doll since the demand is more than the supply. This will breathe scarcity and increase price.

Therefore, the correct option is B