You have a dog walking business and suddenly have 12 new customers. You decide to charge more than you previously did because of this increase. This change in demand has caused a change in what area and why?(1 point)

Question

Responses

The change in demand for dog walkers has caused a change in price because demand outweighs supply.
The change in demand for dog walkers has caused a change in price because demand outweighs supply.

This change in demand for dog walkers has caused a change in credit because you have to borrow money for leashes.
This change in demand for dog walkers has caused a change in credit because you have to borrow money for leashes.

This change in demand for dog walkers has caused a change in service because you now walk more dogs.
This change in demand for dog walkers has caused a change in service because you now walk more dogs.

This change in demand for dog walkers has caused a change in labor because you have to hire your sister to help.

Answer 1

The correct response is:

The change in demand for dog walkers has caused a change in price because demand outweighs supply.

This option accurately reflects the economic principle that when demand for a service increases significantly (in this case, due to gaining 12 new customers), providers can raise prices if the supply of that service (your ability to walk dogs) does not increase at the same rate.