A business has seen demand for its newest product fall rapidly. According to the law of demand, what is the most likely explanation for why this happened?
A. the business reduced the supply of the product
B. the business decreased the product's price
C. the business increased the product's price
D. the business created a shortage of the product ​

Respuesta :

Answer:

the answer is C

Explanation:

Answer:

The correct answer is C. The business increased the product's price.

Explanation:

According to liberal economic theory, the law of supply and demand establishes that the higher the price of a good, the lower its demand; While the cheaper it is, the greater its demand for being more accessible to the public.

Therefore, in the hypothetical case of a rapid fall in demand for a product, it would most likely be the consequence of a sudden increase in the price of the product.