Question

When demand for a product is high, and supply is low, the price of the product usually

Answer 1

Answer: increases

Explanation: The four basic laws of supply and demand are: If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.

Answer 2

the price increases when the supply cannot meet the demand

Step-by-step explanation:

When there are a limited number of a certain item, that item becomes more rare thus, making it more valuable. For example, when certain designer brands only make a certain number of purses in the world, they tend to be more expensive and could be called a "collector's item"