Answer :
When a product has low supply and high demand, the price of the product typically increases. This is due to the basic economic principle of supply and demand.
Here's why:
1. Low supply means there is not enough of the product available in the market.
2. High demand means there is a strong desire for the product among consumers.
3. When demand exceeds supply, it creates a shortage.
4. In response to the shortage, sellers can increase the price of the product because consumers are willing to pay more to get it.
Therefore, in a situation where a product has low supply and high demand, the price usually increases as sellers take advantage of the imbalance between supply and demand to maximize their profits.
