5. when increased raw material costs increase prices for consumers, the situation is known as inflation. a. monetary b. demand-pull c. cost-push d. law of supply 6. what's the term for the idea that there aren't enough resources to satisfy everyone's wants and needs? a. demand b. consumer c. scarcity d. supply 7. the states that more of an item will be purchased at a lower price than at a higher price. a. law of demand b. law of economics c. law of elasticity d. law of supply 8. what might cause a consumer to have an elastic demand for a product? a. the product isn't a necessity. b. the product was produced outside of the united states. c. the product is a necessity. d. the product is priced at $5. 9. consumer tastes or preferences would be most likely to have an effect on a. elasticity. b. the law of supply. c. demand. d. supply.