If the demand for a good or service increases, how will prices affect supply?
(1 point)
Responses
Rising prices will boost supply.
Rising prices will boost supply.
Falling prices will decrease supply.
Falling prices will decrease supply.
Rising prices will decrease supply.
Rising prices will decrease supply.
Falling prices will boost supply.
Rising prices will boost supply.
Which is a right that both citizens and non-citizens in the U.S. share?
(1 point)
Responses
the right to vote
the right to vote
the right to religious freedom
the right to religious freedom
the right to run for public office
the right to run for public office
the right to have a job
If the demand for a good or service increases, rising prices will incentivize suppliers to increase their supply. Therefore, the correct response is: Rising prices will boost supply.
If the demand for a good or service increases, prices will typically affect supply by boosting it. In other words, rising prices will encourage suppliers to increase the quantity of the good or service they are willing and able to produce and sell. This is because higher prices mean higher profit margins for suppliers, which provides an incentive for them to allocate more resources toward production. As a result, the supply curve shifts to the right, indicating an increase in the quantity supplied.
On the other hand, if prices fall, it generally leads to a decrease in supply. Lower prices imply lower profit margins, which can discourage suppliers from producing as much. Consequently, the supply curve shifts to the left, indicating a decrease in the quantity supplied.
Therefore, the correct answer is: Rising prices will boost supply.