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

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.

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

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.

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 where an increase in demand (due to new customers) can lead to a higher price charged for services, especially if the supply (your capacity to walk dogs) hasn't immediately increased to meet that demand.