Question

Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this product may find it difficult to get parts to increase production, and it might have to pay higher prices to receive an adequate supply of parts. In this case, what will happen to the future price of the product?

Answer 1

Answer:

Invariably, the cost of the product will rise. A relatively increase in supply parts directly influences the price of a product.

Answer 2

Answer:

B.   The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right.

Explanation: