6
lesson pretestMultiple Choice

Pretest

Question 6 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Why do prices increase when demand for a product is high?

Answer
A
Companies know they can make more money by selling fewer products at higher prices.
B
Companies know they can stop production and still make money on sales.
C
Companies know that people will be willing to spend more to get an in-demand product.
D
Companies take advantage of the demand to make people spend more money on excess products.
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Why do prices increase when demand for a product…