Question

Customers are demanding your product. Unfortunately, you are struggling to create supply at the same rate. Based on the law of demand, what could you do to decrease the demand?

1. Decrease the supply

2. Decrease the price

3. Increase the supply

4. Increase the Price

Answer 1

Answer: Increase the Price

Step-by-step explanation:

Since the customers are demanding for ones product while the supplier is struggling to create supply at the same rate, the way that the supplier can reduce the demand for the product is to increase the price.

According to the law of demand, when price of a product increases, the consumers will demand less for that product and in a situation whereby there's reduction in price, more of the product will be demanded.