Question

7. Describe a real or made up but possible example of a product that went through a time of scarcity. What was likely to happen to the price of the product when it was scarce, and why? (2-6 sentences. 3.0 points)

Answer 1

In 2012, there was a virus which infected millions of chicken.

It was known as Avian influenza or bird flu. It resulted to scarcity of eggs. As the law of supply and demand states, there is an effect on the price of a product depending on its availability. If there is a low supply and a high demand, there is an increase in price and vice versa.