Question

question 11 of 25
people are willing to pay a higher price if they believe that supplies are
a. limited
b. endless
c. fluctuating
d. increasing

Explanation:

In economics (a sub - field of Business), when supplies are limited (scarcity), the demand for the product or service increases. According to the law of supply and demand, an increase in demand (while supply is limited) leads to an increase in price. People are willing to pay more for something that is scarce. Options B (endless supply would likely lead to lower prices due to abundance), C (fluctuating supply doesn't directly imply a reason for higher prices in the context of what people are willing to pay), and D (increasing supply would tend to lower prices) are less likely to cause people to be willing to pay a higher price compared to limited supply.

Answer:

A. limited