SCIENCE
ENVIRONMENTAL SCIENCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Questions whether the benefit of doing something justifies the economic cost.
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Predicts that the cost of a resource will increase when demand is high or supply is low.
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A measure of monetary value of the goods and services produced.
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None of the above
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Detailed explanation-1: -Key Takeaways. The law of supply and demand predicts that if the supply of goods or services outstrips demand, prices will fall. If demand exceeds supply, prices will rise. In a free market, the equilibrium price is the price at which the supply exactly matches the demand.
Detailed explanation-2: -An increase in demand, all other things unchanged, will cause the equilibrium price to rise; quantity supplied will increase. A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.
Detailed explanation-3: -It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.
Detailed explanation-4: -Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less.
Detailed explanation-5: -If both demand and supply increase, there will be an increase in the equilibrium output, but the effect on price cannot be determined. 1. If both demand and supply increase, consumers wish to buy more and firms wish to supply more so output will increase.