Martin has a clothing store and he has managed to get the only pair of sneakers that everyone wants to buy. How is he most likely going to price these shoes?
He will keep the price the same as his other shoes to be fair
He will lower the price since demand is very low and there is a surplus
He will raise the price since demand is high and supply is scarce
He will raise the price since demand is very low and supply is scarce
How is he most likely going to price these shoes?
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He will raise the price since demand is high and supply is scarce.
This is because when a product is highly sought after and there is limited availability, sellers often increase the price to maximize profit. This situation reflects the basic economic principle of supply and demand: high demand with low supply typically leads to higher prices.