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Question
Suppose that today, the price of an apple is 'X'. If the demand for it increases tomorrow, which of the following is most likely to happen?
Suppose that today, the price of an apple is 'X'. If the demand for it increases tomorrow, which of the following is most likely to happen?
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Solution
The correct option is A Price will increase
The Laissez-Faire principle did not allow the government to interfere in the affairs of private businesses. It liked to leave the market to change naturally, according to the laws of supply and demand. Thus, in such a state, when the demand for a product increases, its price automatically increases, according to the law of the market.
The Laissez-Faire principle did not allow the government to interfere in the affairs of private businesses. It liked to leave the market to change naturally, according to the laws of supply and demand. Thus, in such a state, when the demand for a product increases, its price automatically increases, according to the law of the market.
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