Question

What is the basic relationship between producers and consumers? When price is up, supply is down When price is up, demand is down When price is down, demand is up When price is down, supply is up

Answer 1

Hello!

The asnwer is: When price is up, demand is down

Why?

According to the Law of Demand, there is an inversely proportional relation between price and demand. The Law of Demand states that when the prices are up, the demand goes down, on the opposite side, is the prices goes is drown, the demand goes up until there is not enough supply to offer, so, the prices will rise again.

There is a condition called "equilibrium point" where the prices are determined by the demand, meaning that the consumers are willing to acquire all the supply that the producers are offering.

Have a nice day!

Answer 2

Answer;

When price is up, demand is down

Explanation;

• As the price of a good goes up, consumers demand less of it and more supply enters the market.
• If the price is too high, the supply will be greater than demand, and producers will be stuck with the excess. Conversely, as the price of a good goes down, consumers demand more of it and less supply enters the market.