Which of the following states the law of supply and demand?

Question

(1 point)
Responses

All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service
All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service

All things being equal, the lower the price of a good or service, the lower the demand will be for that good or service.
All things being equal, the lower the price of a good or service, the lower the demand will be for that good or service.

All things being equal, a provider will be willing to supply more goods or services for a lower price if a lower quantity is sold.
All things being equal, a provider will be willing to supply more goods or services for a lower price if a lower quantity is sold.

All things being equal, a provider will be willing to supply fewer goods or services for a lower price if a lower quantity is sold

Answer 1

The correct statement that encapsulates the law of supply and demand is:

"All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service."

This reflects the law of demand, which indicates that as prices rise, consumers tend to purchase less of a good or service, assuming all other factors are constant.

The law of supply states that, all things being equal, an increase in price will typically lead to an increase in the quantity supplied. However, the options provided do not correctly reflect this aspect of the law of supply.

Overall, the first statement regarding demand is the one that is accurate in the context of the law of supply and demand.