Question

Which of the following economic principles that impact price is defined as the interaction between the seller and the buyer and as a price increases, a producer wants to supply more, and a consumer will demand less when the price falls?
Responses

Break-even Point
Break-even Point

Supply and Demand
Supply and Demand

Secondary Research
Secondary Research

Primary Research

Answer 1

The economic principle you are referring to is **Supply and Demand**. This principle describes how the price of a good or service is determined by the relationship between its availability (supply) and the desire for it (demand). According to this principle, as the price increases, producers are willing to supply more, while consumers will demand less; conversely, as the price falls, producers supply less, and consumers demand more.