Question

When supplies are endless, prices tend to _____.
A.decrease
B.stay the same
C.fluctuate
D.increase
It's B. right ?

Answer 1

Say you had 200 items and 100 people willing to buy them

Now say that number goes from 200 to 1000. Would the price increase or decrease?

Answer 2

increase :)

Answer 3

Assume that the market is functioning as it should (ie there's no price fixing or monopolies)

Answer 4

which would think is more expensive

a rare stone...or a common stone that you would find anywhere

Answer 5

a common stone !

Answer 6

why a common stone? if you can find it anywhere, then you can buy it anywhere

Answer 7

competition would lower the price of that common stone because sellers would be competing to sell it

Answer 8

oh! sorry I get it now thanks jim

Answer 9

but

if there are only a few of these stones all over the world, then competition isn't that fierce

Answer 10

which wouldn't drive down the price...it would most likely bump it up (since demand exceeds supply)

Answer 11

so if you have an endless supply (which isn't possible, but let's say it is), then prices would be lowered

Answer 12

omg! the correct answer was actually DECREASE.

Answer 13

yes using the logic above