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Question 3

Which of the following changes in supply and demand will lead a product to become less scarce?
A decreased demand increased supply
B
increased demand, decreased supply
С
decreased demand, decreased supply
D
increased demand increased supply

Question 3 Which of the following changes in supply and demand will lead a product-example-1

2 Answers

2 votes

Final answer:

The correct changes in supply and demand that will lead a product to become less scarce are decreased demand and increased supply.

Step-by-step explanation:

In this question, we are looking for the changes in supply and demand that will lead to a product becoming less scarce. The correct answer is option A: decreased demand, increased supply.

When demand for a product decreases, there is less competition among buyers, which can lead to lower prices. On the other hand, when supply of a product increases, there is more availability, which can also lead to lower prices. Therefore, when both demand and supply decrease, the product becomes less scarce.

Example:

Let's say there is a high demand for a specific smartphone. The supply is limited, making the product scarce. However, if the demand decreases (maybe due to the release of a newer model), and at the same time, the supply increases (maybe due to the manufacturer producing more units), the product becomes less scarce.

User Kevin Cloet
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D because if demand is increased, places are gonna need to increase their supply to fulfill the demand
User StarJedi
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