15
QuizMultiple Choice

Topic Test

Question 15 • GA-Government-CR

In regards to supply, the law of supply and demand states that as ________________.

Answer
A
supplies increase, prices increase
B
supplies decrease, prices decrease
C
demand increases, supply decreases
D
supplies decrease, prices increase

Explanation

When supply decreases while demand stays the same, fewer goods are available to buyers. This scarcity tends to push the price up, so the correct choice is “supplies decrease, prices increase.”

AI-written and checked against the verified answer.