A company released a new video game system just in time for Christmas and many stores quickly sold out. Although the price of the system was only $350, they sold for over $2,000 on an online auction site. Which of the following economic principles best explains this event?

People respond to incentives because of self-interest.

The value of some objects increases relative to other objects.

The price of all goods will rise over time.

Competition among consumers increases prices.

The answer would be 'competition among consumers increases prices' because if there was a limited amount, if someone really wants that game, they'd pay more than usual when supplies sold out.

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Arshikhan8123id Arshikhan8123id · Answer 2

The correct answer is competition among consumers increases prices.

Does competition cause price increases?

Economic intuition suggests that increased competition generates lower prices. However, recent theoretical work shows that a monopolist may charge a lower price than a firm facing a competitor selling a differentiated product.

How does competition among buyers affect prices?

Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them. Competition among sellers results in lower costs and prices, higher product quality, and better customer service.

Learn more about the economic principles here https://brainly.com/question/3441298

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