ECONOMICS
SCARCITY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Price
|
|
|
Command Economy
|
|
|
Market Economy
|
|
|
Suppliers’ Costs
|
Detailed explanation-1: -Quantity demanded depends on the price of a good or service in a marketplace. The price of a product and the quantity demand for that product have an inverse relationship, according to the law of demand.
Detailed explanation-2: -Market prices are dependent upon the interaction of demand and supply. An equilibrium price is a balance of demand and supply factors.
Detailed explanation-3: -Key points. The law of supply states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied.
Detailed explanation-4: -If the market price of a product increases, then the quantity supplied increases, and vice versa. For example, when housing prices increase (when the demand for houses has been strong), then more people will want to sell their house (quantity supplied increases).