COMMUNISM SOCIALISM AND CAPITALISM
COMMUNISM CONCEPT TYPES EXAMPLE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Over-manufacturing reduces the price of a product.
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Over-manufacturing creates jobs to improve the economy.
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Over-manufacturing raises prices to offset production costs.
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Over-manufacturing leads to peaks in the business cycle.
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Detailed explanation-1: -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-2: -Definition of the law of supply and demand For every product, there’s an equilibrium where the price, consumer demand and manufacturer supply meet. Manufacturers might increase production to capitalize on interest when a product has a high demand. Increased production may cause prices to go up.
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: -Supply and Demand Determine the Price of Goods and Quantities Produced and Consumed. Consumers may exhaust the available supply of a good by purchasing a given good or service at a high volume. This leads to an increase in demand. As demand increases, the available supply also decreases.