When does the price of an item increase?
a. when supply is greater than demand
b. when demand is greater than supply
c. when the cost of manufacturing the item decreases

I believe the answer is: B. when demand is greater than supply

When demand is greater than supply, the commodities demanded would become 'rare' in the market.

This mean that because of the rarity, more people would be willing to make more economic sacrifice to obtain the product, which lead to an increase in price.

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