describes the relationship between

Question

prices and demand. According to this law, higher prices

encourage buyers to look for a substitute. A substitute is a

roughly equivalent good or service. Finding substitutes drops

demand for the original good or service, thus lowering prices

over time. The !

between price and quantity supplied. A rise in prices encourages

producers to supply more of a good or service in the hopes of

making more money.

The

tells the relationship

# law of supply

#: law of demand

# substitute

# demand curve

# relative price

Answer 1

Your text outlines some fundamental concepts in economics related to the laws of supply and demand. Here’s a concise explanation based on the points you've mentioned while filling in the blanks:

The law of demand describes the relationship between prices and demand. According to this law, higher prices encourage buyers to look for a substitute. A substitute is a roughly equivalent good or service. Finding substitutes drops demand for the original good or service, thus lowering prices over time.

The law of supply illustrates the relationship between price and quantity supplied. A rise in prices encourages producers to supply more of a good or service in the hopes of making more money.

The demand curve visually represents the relationship between the price of a good and the quantity of that good demanded by consumers.

Relative price refers to the price of a good or service in comparison to another, which affects the choice consumers make regarding substitutes.

This interconnectedness among these concepts forms the basis of market dynamics, where changes in price influence both consumer behavior (demand) and producer behavior (supply).

Answer 2

What is a major risk of using a financial institution?(1 point)
Responses

Insurance will not cover any losses incurred by a financial institution.
Insurance will not cover any losses incurred by a financial institution.

Investors can be unable to withdraw money when they need it.
Investors can be unable to withdraw money when they need it.

Financial institutions may choose not to pay investors back.
Financial institutions may choose not to pay investors back.

The financial institution may fail entirely.

Answer 3

The correct response to the question "What is a major risk of using a financial institution?" is:

The financial institution may fail entirely.

While the other options present potential risks, the risk of a financial institution failing entirely (e.g., going bankrupt) is a significant concern for investors and customers, as it could lead to substantial financial losses.

Answer 4

A popular cell phone manufacturer begins selling a new phone with many unique features. Lots of people want to buy the new phone. The old phone cost $149.00. What is the most likely price of the new phone?(1 point)
Responses

$79.00
$79.00

$129.00
$129.00

$149.00
$149.00

$199.00

Answer 5

Given the scenario where a popular cell phone manufacturer introduces a new phone with many unique features and high demand, the most likely price of the new phone would be:

$199.00

This is because new products with unique features are typically priced higher than older models, especially when there is strong demand for the new phone.