🎓 GED Exam Prep

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

A The market price of the smartphone will decrease.
B The quantity supplied of the smartphone will decrease.
C The market price of the smartphone will increase.
D The smartphone will become a free good.

✓ Correct Answer: Option C

According to the laws of supply and demand, if demand rises and supply stays constant, consumers will compete for the limited product, driving its price up until a new equilibrium is reached.

Related GED Exam Prep Questions