Question
When supply decreases and demand increases, what happens to the price of a good?
(1 point)
Responses
it increases
it increases
it stays the same
it stays the same
it decreases
(1 point)
Responses
it increases
it increases
it stays the same
it stays the same
it decreases
Answers
GPT-4o mini
When supply decreases and demand increases, the price of a good typically increases. This is because the decrease in supply creates a scarcity of the good, while the increase in demand means more consumers are willing to buy it, leading to upward pressure on the price.
Therefore, the correct response is: **it increases**.
Therefore, the correct response is: **it increases**.