Question

**ECONOMICS**

Answer 1

Answer:

B.) Companies believe that the product's selling price will go up.

Explanation:

A case of supply and demand. When there are fewer goods available, and the demand is high, the company will profit more with rising sales prices. A prime example is with car fuel: the prices raised in the U.S., but because people like traveling and they need to go places, gasoline companies gain a larger profit from the sale of pricy gas.

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Answer 2

Answer:

b companies reduce regulations an taxes on a produc