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Grade 8
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Markets, Incentives, and Competition
Worksheet
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Grade 8
8.75 Markets, Incentives, and Competition
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What is the best economic reason for surge pricing?
A
Prices rise so buyers will demand more of the service
B
Higher prices reduce excess demand and attract more suppliers, helping balance the market
C
Surge pricing is used only to punish buyers for ordering
D
Higher prices guarantee fewer suppliers will work, making shortages worse
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