If the demand for a good or service increases. How will prices affect supply?
A. Rising prices will boost supply
B. Falling prices will decrease supply.
C. Rising prices will decrease supply
D. Falling prices will boost supply
C. Rising prices will decrease supply
C. Rising prices will decrease supply
To determine how prices will affect supply when the demand for a good or service increases, we need to understand the relationship between supply and price in the market.
The answer to this question can be found by referencing the law of supply, which states that as prices increase, suppliers are willing to produce and sell more of a good or service, and as prices decrease, suppliers are less willing to produce and sell.
In this case, since the demand for a good or service is increasing, if prices rise, suppliers will be motivated to increase their production and supply in order to take advantage of the higher prices. Therefore, the correct answer is A. Rising prices will boost supply.