Question

quiz
question 9 of 10
if an item is scarce, how does this affect how it is priced in a market economy?
the price will decrease
the price will increase
the price will not change
the price will be up and down

Explanation:

In a market economy, the price of a good is influenced by supply and demand. Scarcity means the supply of the item is low relative to its demand. When demand exceeds supply (due to scarcity), according to the basic principles of supply - demand in economics, the price of the item tends to increase as consumers compete for the limited available quantity.

Answer:

B. The price will increase