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.

Question

Jean Fitzgerald

History

20 April, 15:24

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.

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Answers (1)

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Rowan Carpenter · Answer 1

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.