ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
When the supply of a product increases, prices tend to fall.
|
|
|
When demand for a product goes up, prices can be set higher.
|
|
|
The price point at which supply and demand are equal is said to be the equilibrium point.
|
|
|
When demand for service goes down, a business will increase prices to make up for the loss of sales.
|
Detailed explanation-1: -Detailed Solution The correct answer is Consumers are affected by demonstration effect.
Detailed explanation-2: -Answer and Explanation: The correct option is c. As the price of a good or service rises, the quantity supplied will increase. Everything else held constant; the law of supply states that as the price of a good increases, the number of goods supplied increases.
Detailed explanation-3: -Rare goods The goods that are rare such as artistic or precious goods have a limited supply. The supply of these goods cannot be increased according to their demand or rising prices. Thus, even if their price increases their supply cannot be increased. In this case, also the law of supply shall not apply.
Detailed explanation-4: -Answer and Explanation: Income is not a determinant of supply.