How do markets keep producers from increasing prices?

Question

(1 point)
Responses

Higher prices cause demand shifts.
Higher prices cause demand shifts.

Higher prices cause supply shifts.
Higher prices cause supply shifts.

Higher prices decrease quantity sold.
Higher prices decrease quantity sold.

Higher prices decrease consumer demand.
Higher prices decrease consumer demand.

Answer 1

One of the ways markets keep producers from increasing prices is through the impact of higher prices on demand. When prices are increased, it typically causes a shift in demand, as consumers may choose to purchase less of a product or opt for alternatives that are more affordable. This decrease in demand can create pressure on producers to keep their prices competitive in order to maintain their customer base and sales.

Answer 2

Choose a answer that makes the most sense

Answer 3

Higher prices decrease consumer demand.