If the Price of a Good Has Risen Over Time

question 69

Multiple Choice

If the price of a good has risen over time,

• A)it must have become more scarce.
• B)it must have become less scarce.
• C)it has become more scarce only if the price adjusted for inflation has risen.
• D)it has become less scarce only if the price adjusted for inflation has risen.

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Definitions:

Quantity Supplied

The amount of a good that producers are willing and able to sell at a certain price over a specified period of time.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Buyers and Sellers

Participants in a market who exchange money for goods or services, where buyers provide the money and sellers provide the goods or services.

Markets

Markets are arenas in which buyers and sellers come together to exchange goods, services, or financial instruments at determined prices.