Ask Question
1 March, 11:01

If we observe the price of a good or service rising then the most likely cause is increase in demand or a temporary surplus?

+2
Answers (2)
  1. 1 March, 11:08
    0
    Usually (rises) because of general economic growth. if there is a high demand for the goods then the price will most likely rise in order for consumers to buy a limited amount. its also a sort of scheme to increase the full potential of price. prices for a good would probably not rise if the producer/provider has an exceptional amount of stock. from price changes you can determine the demand. high price is high demand and less stock. low price is low demand and likely a surplus therefore the low price is to remove the surplus more easily (low demand)
  2. 1 March, 14:00
    0
    The most likely cause is increase in demand because if more people want a good, companies are able to make the good more expensive.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If we observe the price of a good or service rising then the most likely cause is increase in demand or a temporary surplus? ...” in 📘 SAT if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers