What happens when the price of a scarce product rises, other things being equal?

Type: MCQ • Marks: 1

A. Demand must become zero

B. Scarcity disappears immediately

C. It may signal scarcity and encourage producers to supply more

D. Production automatically stops

Explanation

Explanation: Higher prices can create incentives for additional production.

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Class 9th Understanding Society India and Beyond, Part I

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