Multiple choice

You are using a branded shampoo for a long time and you noticed that there is a sudden rise in the price of that shampoo. What can be the reason for this rise in price?

  1. Decrease in cost of production of that particular shampoo

  2. Few people may be buying this brand

  3. Increase in price of other similar shampoos

  4. Increase in price of conditioner

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An increase in the price of other shampoos must have increased the demand for the given shampoo. An increase in demand will lead to increase in the price of shampoo to attain equilibrium. Hence, this is the correct answer.

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