select the correct answer. when does the price of an item increase? a. when supply is greater than demand b…

select the correct answer. when does the price of an item increase? a. when supply is greater than demand b. when demand is greater than supply c. when the cost of manufacturing the item decreases

select the correct answer. when does the price of an item increase? a. when supply is greater than demand b. when demand is greater than supply c. when the cost of manufacturing the item decreases

Answer

Brief Explanations:

In economics, when demand for an item exceeds its supply, there is a shortage. Sellers can then charge higher prices, leading to an increase in the item's price. When supply is greater than demand, there is a surplus and prices tend to fall. A decrease in manufacturing cost usually leads to lower prices or higher profit - margins, not an increase in the item's price.

Answer:

B. when demand is greater than supply