Question

A popular new video game is released in limited supply. How will the limited supply most likely impact sales of the video game? A. People will manufacture their own video games. B. It will decrease the price of the video game. C. It will increase the price of the video game. D. People will lose interest in the video game.

Answer 1

C should be the correct answer to this question.

Answer 2

The correct answer is C. It will increase the price of the video game.

Explanation:

In economics, the supply refers to the number of products or good available, this along with the demand which is the number of people that might buy or pay for the product are the two main factors that affect sales an economy. Generally speaking, if the supply is low, but the demand is hight this would lead to a high price in the product on the opposite an abundant supply and a low demand leads to low prices.

This means in the case the video game with a limited supply but that is highly popular it is expected the price will increase as many people would pay for it but there are only a few videogames and therefore one way to balance this is to increase the price, also this is convenient for the selles as they can get more revenue, which would not be possible if the demand was low.