A company released a new video game system just in time for Christmas and many stores quickly sold out. Although the price of th
e system was only $350, they sold for over $2,000 on an online auction site. Which of the following economic principles best explains this event? People respond to incentives because of self-interest.
The value of some objects increases relative to other objects.
The answer would be 'competition among consumers increases prices' because if there was a limited amount, if someone really wants that game, they'd pay more than usual when supplies sold out.
