What happens when a product is scarce? A) Demand declines to zero. B)

QUESTION

What happens when a product is scarce?

A) Demand declines to zero.
B) Sellers can charge more for it.
C) Sellers must charge less for it.
D) Buyers will expect to pay less for it.
E) Factors of production are meeting demand.

ANSWER

Answer: B
Explanation: B) Because demand is higher for a scarce product, sellers can increase the price.