When a good suddenly becomes more scarce in a free market, caused by a significant increase in consumer demand, then
A) it is a clear sign that households have become more greedy.
B) the price will tend to rise rapidly in light of the greater scarcity.
C) suppliers will gain in the exchange and buyers will lose.
D) the law of demand will be contradicted because people will be buying more, not less, at a higher price.
E) all of the above are true.
B
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A supply curve is defined as the relationship between
A) the price of a good and the quantity that producers are willing to sell. B) the income of consumers and the quantity of a product that producers are willing to sell. C) the income of consumers and the quantity of a product that consumers are willing to buy. D) the price of a good and the quantity that consumers are willing to buy.
The quantity theory of money of the Classical economists says that a change in the money supply will produce a:
a. proportional change in the price level. b. greater than proportional change in the price level. c. less than proportional change in the price level. d. wide variation in the velocity of money.