Question

A company released a new video game system just in time for Christmas and many stores quickly sold out. Although the price of the system was only $350, they sold for over $2,000 on an online auction site. Which of the following economic principles best explains this event?

People respond to incentives because of self-interest.
The value of some objects increases relative to other objects.
The price of all goods will rise over time.
Competition among consumers increases prices.

Answer 1

Arlene opens a donut shop that offers plain, glazed, and chocolate donuts, along with fresh coffee. How could Arlene expand her business with the least risk to her current profits?

Hire someone to tell her how to run her shop more efficiently.
Open several new stores in different cities across the country.
Expand her current menu to include other products and flavors.
Make television and radio commercials for a national advertising campaign.

Answer 2

@tigerlover

Answer 3

The price of a good or service will increase because

the supply fluctuated
the demand decreased
the demand increased
the supply increased

Answer 4

The answer would be 'competition among consumers increases prices' because if there was a limited amount, if someone really wants that game, they'd pay more than usual when supplies sold out.

Expand her current menu to include other products and flavors.


According to the law of supply, if the price of a good or service increases: Quantity supplied will increase. If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other.