Describe each of the following statements as true or false, and explain your ans

Question

Describe each of the following statements as true or false, and explain your answer.
A. Demand is the amount of a good or service that a buyer will purchase at a particular price.
B. If the price falls, there will be an increase in demand.
C. When two products are complementary goods, an increase in the price of one will tend to increase the demand for the other.
D. An increase in the price of other goods that could be made by producers will tend to decrease the supply of the current good the producer is making.
E. If the market price of a product is below its equilibrium price, the market price will tend to rise because the demand will decrease and supply will increase

Explanation / Answer

a) false. It is the amount of a good or service that is wanted by a population at a particular price b) true. nothing to explain here... lower prices means more people can have it c) false. an increase in one likely will increase the other. demand won't necessarily be affected. d) false. It is never assumed that the supply of goods come from the same resource. Also, it is always assumed that there are plenty of resources around for everyone. e)False. Demand will increase and supply will decrease.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.