7
QuizMultiple Choice

Supply, Demand, and Price

Question 7 • EA Academy Civics 9

Company A is the first business to produce a computer battery that lasts three times as long as existing batteries. As demand for the battery grows, the company raises prices and increases production. The following year, Company B markets a battery that lasts almost as long but costs only half as much. Company A is forced to lower its price. In response, the company produces less of its battery.

Answer
A
the law of demand
B
factors of production
C
the law of supply
D
substituted goods
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