Which Statement Accurately Summarizes the Relationship Between the Prices of Goods

question 93

Multiple Choice

Which statement accurately summarizes the relationship between the prices of goods and their relative scarcity?

• A)The price of a good is a direct function of the relative scarcity of the good.
• B)The price of a good is an inverse function of the relative scarcity of the good.
• C)The price of a good is independent of the relative scarcity of the good.
• D)High prices lead to greater relative scarcity.

---

Definitions:

Full Disclosure

Obligation to provide all relevant information and facts to the other party, particularly in financial transactions or legal agreements.

Unilateral Mistake

A misinterpretation or error made by one party in a contract, which does not usually affect the enforceability of the contract.

Ethical Rule

Guidelines or principles designed to govern behaviors within specific professional fields or societal norms.

Termination of Offer

The revocation or withdrawal of a proposal by the offeror before it has been accepted by the offeree.