🎓 GED Exam Prep

If the demand for a popular new smartphone increases significantly while its supply remains constant, what is the most likely immediate effect on the market?

A The price of the smartphone will decrease.
B The price of the smartphone will increase.
C The supply of the smartphone will automatically increase.
D The demand for competing smartphones will decrease.

✓ Correct Answer: Option B

According to the laws of supply and demand, when demand rises for a product and supply does not, a shortage occurs. This shortage typically leads to an increase in the product's market price.

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