Which describes a situation in which the price of a good would rise?

Question

Responses

Consumers start using less of a good because more substitutes are available.

Consumers start using less of a good because more substitutes are available.

Scarce natural resources make it more difficult for producers to keep up with demand.

Scarce natural resources make it more difficult for producers to keep up with demand.

A new technology allows producers to increase supply very quickly.

A new technology allows producers to increase supply very quickly.

Production is increased in order to catch up with a sudden rise in demand.

Answer 1

The situation in which the price of a good would rise is:

Scarce natural resources make it more difficult for producers to keep up with demand.

In this scenario, the limited availability of natural resources would constrain supply while demand remains high, leading to an increase in price.