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

(1 po int)
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.
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.

1 answer

The statement that correctly states 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 states that as the price increases, the quantity demanded generally decreases, assuming all other factors remain constant. The law of supply states that as the price increases, the quantity supplied generally increases.

Thus, the overall concept of supply and demand involves understanding how these two laws interact in a market.