Answered

Which of the following states the law of supply and demand?

A. All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service.
B. All things being equal, the lower the price of a good or service, the lower the demand will be for that good or service.
C. All things being equal, a provider will be willing to supply more goods or services for a lower price if a lower quantity is sold.
D. All things being equal, a provider will be willing to supply fewer goods or services for a lower price if a lower quantity is sold.



Answer :

GinnyAnswer

Final answer:

The law of demand and the law of supply explain how prices affect the quantity demanded and supplied in economics.


Explanation:

Law of Demand: The law of demand states that, for virtually all goods and services, a higher price leads to a reduction in quantity demanded while a lower price leads to an increase in quantity demanded. This is because as the price rises, the opportunity cost of purchasing the good also increases, causing people to buy less.

Law of Supply: On the other hand, the law of supply states that, given all else stays constant, a higher price leads producers to supply more units of a good or service, while a lower price leads to a decrease in the quantity supplied.


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