if many buyers want a good or service that is in low supply the price will most likely
stay the same
increase
decrease
increase
If many buyers want a good or service that is in low supply, the price will most likely increase.
If many buyers want a good or service that is in low supply, the price will most likely increase.
To understand why, it's important to consider the basic principles of supply and demand. When the demand for a product or service exceeds the available supply, it creates a situation of scarcity. In such cases, suppliers can increase the price because they know that buyers are willing to pay more to secure the limited quantity available.
One way to further explain this concept is by considering the demand curve. When there is a high demand for a product and the supply is low, the demand curve shifts to the right. This means that consumers are willing to purchase the product at a higher price. In response to this increased demand, suppliers raise prices to capitalize on the scarcity and maximize their profits.
In summary, if multiple buyers want a good or service that is in low supply, the price is likely to increase as suppliers take advantage of the situation to meet the demands of the market.