How were the miners able to pay such steep prices for the goods offered by Boomtown merchants?
Final answer: Boomtown merchants could sell products at high prices due to a shortage of goods and high demand from the influx of miners. Option C is correct. On the other side, miners could afford these prices due to the wealth they accumulated from successful gold mining. Option C is correct.
Explanation:
Boomtown merchants were able to charge high prices for their goods primarily due to the short supply and high demand of commodities in these rapidly growing towns (Option C). As large numbers of miners poured into these areas in search of gold, they created a sudden demand for goods and services that local merchants were more than happy to meet, albeit at increased prices. As the ungoverned nature of these boomtowns usually meant there was little competition, merchants could essentially charge as much as they desired for their products. Option C is correct.
The miners, on the other hand, were able to afford to pay these exorbitant prices as a result of their successful gold mining operations (Option C). Substantial quantities of gold were discovered, which increased the wealth of these miners and enabled them to purchase goods at inflated prices. Option C is correct.