When a new product has high demand in the market, how should a company react?
A) Increase the supply of the product.
B) Decrease the supply of the product.
C) Reduce the price of the product.
D) Maintain the current supply until demand falls.
E) Create an artificial shortage of the product.
Answer: A
Explanation: A) A firm will want to have more products available when demand is high.
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