If consumer demand for a popular new smartphone suddenly increases significantly, what is the most likely immediate effect on the market for that smartphone?

The correct answer to the question "If consumer demand for a popular new smartphone suddenly increases significantly, what is the most likely immediate effect on the market for that smartphone?" is Option B: An increase in its price and an increase in quantity supplied.

The other options — A) A decrease in its price and an increase in quantity supplied, C) A decrease in its price and a decrease in quantity supplied, D) An increase in its price and a decrease in quantity supplied — are incorrect for this GED Exam Prep question. As explained above: When demand for a product rises sharply, producers can typically charge more for it, leading to an increase in price. This higher price also incentivizes producers to supply more of the product to me…