Choose the best answer.

Question

If supply of a product goes up, what happens to demand and price?

demand goes down, price goes down

demand goes up, price goes down

demand goes down, price goes up

demand goes up, price goes up

Answer 1

The best answer is:

demand goes down, price goes down

When the supply of a product increases, usually the price tends to decrease, and if the price is lower, the demand for the product may decrease.