Answer: Increase in price due to shortage of goods
Explanation:
Inflation simply means when the prices of goods and services increase. Inflation can be as a result of the shortage of goods. When the quantity demanded for a particular good is more than the quantity supplied, this will lead to shortage thereby leading to sellers increasing the price of the available goods.
Also, when there is increase in the cost of the factors of production, this can also lead to the increase in the prices of goods which ultimately leads to inflation.
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