Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

11 multiple choice 1 point a producer will raise the price and supply o…

Question

11 multiple choice 1 point a producer will raise the price and supply of a product when the... price is high market is in equilibrium demand is high demand is low

Explanation:

Brief Explanations

In economics (a subfield of Business), the law of supply and demand states that when demand for a product is high, producers are incentivized to raise prices and increase supply to maximize profits. A high price alone doesn't trigger supply increase (it's a result), market equilibrium means supply = demand (no incentive to change), and low demand would lead to lower prices/supply. So the correct reason is high demand.

Answer:

C. demand is high