A Grade 11 student learned from his Economics subject that when the supply of a product is limited, its price gets higher than the average price. On the other hand, if there is an increase in supply, its price gets lower. What type of data is being presented?



Answer :

The data being presented is related to the Law of Supply and Demand. This is a fundamental economic principle that explains the relationship between the price of a good or service and the quantity available (supply) and desired (demand).

In this specific case, the data describes the supply side of the law. It highlights the inverse relationship between the quantity supplied and the price:

Limited supply: When there are fewer goods available (low supply), the price tends to increase because there's more competition among buyers for the limited products.

Increased supply: When there are more goods available (high supply), the price tends to decrease as sellers compete to attract buyers with lower prices.