GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When demand is greater than supply, the price goes down.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Answer and Explanation: The statement, “ An increase in demand always leads to an increase in supply, ‘’ is False.
Detailed explanation-2: -An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. 1. For any quantity, consumers now place a higher value on the good, and producers must have a higher price in order to supply the good; therefore, price will increase.
There is 1 question to complete.