Question

What happens to the price of a good or service when the SUPPLY is HIGH and the

Answer 1

Answer:

B. The price goes down.

Explanation:

If it was Supply is LOW and Demand is HIGH the it would be C. The price goes up

Plus, I took the test

Hope this helps :D

Answer 2

The correct answer is letter C.

The law of demand says that, as a rule, price and quantity required in a given market are inversely related.

In other words, the higher the price of a product, the less people are willing or can include (everything else unchanged).

When the price of a welfare, overall purchasing power decreases (income effect) and waste changes to cheaper goods (substitution effect).

Other factors may also affect demand.