SCIENCE
ENVIRONMENTAL SCIENCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When demand for a product is low, the producer will
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raise price and drop supply
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raise price and supply
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drop price and raise supply
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drop price and supply
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Explanation:
Detailed explanation-1: -Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases.
Detailed explanation-2: -When demand exceeds supply, prices tend to rise.
Detailed explanation-3: -Economists call this situation an “excess supply” – that is the quantity demanded is less than the quantity supplied at the given price. This is also called a surplus. So, if the price is too high, sellers will have leftover chickens.
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