ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government sets the prices for goods and services.
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Prices are determined by the interaction of producers and consumers.
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Consumers alone determine the prices for goods and services.
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Technology dictates the prices charged for goods and services.
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Detailed explanation-1: -Which statement expresses a central idea of how the laws of supply and demand work? The government sets the prices for goods and services. Prices are determined by the interaction of producers and consumers.
Detailed explanation-2: -Equilibrium price. When a product exchange occurs, the agreed upon price is called an equilibrium price, or a market clearing price. Graphically, this price occurs at the intersection of demand and supply as presented in Image 1.
Detailed explanation-3: -The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand. As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows.
Detailed explanation-4: -Equilibrium: Where Supply and Demand Intersect The equilibrium price is the only price where the desires of consumers and the desires of producers agree-that is, where the amount of the product that consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied).