Question

in which situation would the price of a good be most likely to increase? theres a sudden increase in the number of companies competing to sell the good. a rise in demand happens too quickly for producers to increase production to keep up. a breakthrough in productive technology enables a company to increase its output. an increase in production costs results from a rise in wages.

Explanation:

• More competing companies increase supply, which lowers price.
• Better tech increases supply, reducing price.
• Higher production costs decrease supply, but slower demand growth can offset this.
• When demand rises faster than producers can increase supply, excess demand pushes price up.

Answer:

A rise in demand happens too quickly for producers to increase production to keep up.