According to Adam Smith’s view of the supply and demand process, how do consumers affect the price of a commodity?

a. When there is not enough supply, consumers will bid the price of an item above the natural price.
b. Producers reap greater profits when the price of the commodity is set below the natural price.
c. When there is a shortage of a commodity, the price will sink to its natural level.
d. Producers strive to achieve a natural pricing level in order to promote social utility.


Answer: A

Philosophy & Belief

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