Question

A toy company creates a new toy that suddenly become very popular. The toys in the stores sell out immediately, and the factories have not finished making the next batch of toys yet.
What will happen to the price of the toys?


A. The price will go down because demand will drop.

B. The price will go up because supply is low.

C. The price will go up because demand is low.

D. The price will go down because supply has dropped.

Answer 1

The answer is B. The Price will go up because supply is low. They wouldn’t want the product to sell out so quickly, so they would raise the price of the product.