In a free enterprise economy, prices are determined by supply and demand. How is the price of an item affected if the supply goes down?
A.
The price of the item will go down.
B.
The price of the item will go up.
C.
The price of the item will stay the same.
D.
The price will go down, but then it will go up.
Reset
This happens because the more demand for a product, the more price rises. Such as if there are only a few models of a product, they will sell for more.
