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Wewaii
28 days ago
4

in the aftermath of a hurricane, clean water became scarce, and the price of bottled water skyrocketed. This is an example of th

e role of price in
History
1 answer:
BigorU [1.6K]28 days ago
5 0
In economics, the supply and demand model helps determine the price of a commodity based on the interest level and scarcity of that product. When there is high demand for a scarce resource, its value significantly increases. To obtain such a resource, one may need to offer something of high worth to the owner. In the current market, if a product is limited and sought after by many, its monetary value rises. This scenario applies in the state of affairs mentioned in the question; since water supply is low yet in high demand, those able to offer more will likely acquire it. Conversely, if there is an abundance of water with little desire for it, the prices would drop sharply.
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