1. If a product becomes more easily available, what is likely to happen?
A) The product will get more competitors.
B) The cost of making the product will increase.
C) The product will become a consumer good.
D) The price will go down.
Is the answer D? I'm not really sure, so help would be appreciated. Thank you.
Or is it B?
I'm kinda confused here. Either ones could technically happen. the price could go down if no one was buying the product. BUT if people were buying the product due to how easily available it was, the price could go up.
I think you were right the first time. Another tutor may have different ideas.
http://www.google.com/?gws_rd=ssl#q=supply+and+demand
To determine the correct answer, let's analyze the options provided:
A) The product will get more competitors: This option suggests that when a product becomes more easily available, it will attract more competitors. While this could be a possibility, it does not directly address the outcome of the product's availability.
B) The cost of making the product will increase: This option suggests that as the product becomes more easily available, the cost of production will rise. However, it is more typical for high availability to result in cost reduction rather than an increase.
C) The product will become a consumer good: This option proposes that when a product becomes more easily available, it transitions into a consumer good. While this is one possible outcome, it is not necessarily a direct result of increased availability.
D) The price will go down: This option suggests that as a product becomes more easily available, its price will decrease. This answer aligns with the common economic principle of supply and demand.
Considering the given options and the economic principle mentioned, the correct answer is D) The price will go down. When a product becomes more readily available, the increased supply can lead to a decrease in price as it becomes more accessible to consumers. Therefore, option D is the most likely outcome.