A raise in the price of a product causes _____.



a decrease in competition


an increase in competition


a decrease in supply


an increase in demand

Respuesta :

The raise in the price of a product causes an increase in competition.

The answer to the question is (B) an increase in competition.

This is because when price increases for a product, consumers might choose to change to products from other competitors which are cheaper. This situation would not decrease supply; it would instead increase supply due to the decrease in demand from consumers who are more reluctant to buy the products due to the price increase.