Question
Your business is selling more and more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months? The price will increase and supply will increase. The price will decrease and supply will increase. The price will decrease, and supply will decrease The price will Increase, and supply will decrease.
Answer
4.6
(298 Votes)
Timothy
Master · Tutor for 5 years
Answer
The price will increase, and supply will increase.
Explanation
According to the law of supply and demand, various factors can affect the price and supply of products. In situations where there is an increasing demand for a product, suppliers often increase the supply to meet the higher demand. Concurrently, as demand grows, it can lead to higher prices since more consumers are competing to purchase the product. Therefore, with the growing demand for large-screen televisions, it is logical to anticipate that both the price and supply of these televisions will increase over the next few months.