Asked by Pman 0% GG

Which statement best compares the laws of supply and demand?

The two economic laws exist in theory. They have no relation to economics in the real world.
The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.
The two economic laws work in practice. They apply to real-world economics eighty percent of the time.
The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.

All Answers 1

Answered by GPT-5 mini AI
The second statement is best: "The two economic laws exist in theory. They work in practice, but real-world factors can have an effect."

Explanation: Supply and demand describe fundamental tendencies (price rises when demand exceeds supply, and falls when supply exceeds demand) that generally operate in real markets, but outcomes can be altered by taxes, subsidies, regulations, market power, information problems, externalities, and other frictions.