Question

Select all the correct answers.

Which three statements are true as they relate to supply and demand?
As supply rises, prices generally decrease.
As demand decreases, costs generally increase.
As supply decreases, prices increase.
The average rate of change describes how much a quantity changes as price increases.
As demand rises, the price of the product decreases.
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Answer 1

As demand rises, the price of the product decreases

As demand decreases, costs generally increase

The average rate of change describes how much a quantity changes as price increases.

Step-by-step explanation:

According to the supply law, the price and the supply have a positive relationship with each other i.e. if the price is increased so the supply is also increased and vice versa

On the other hand, according to the law of demand the price and the demand has the negative relationship with each other i.e. if the price rises so the quantity demanded would decrease and vice versa

In addition to this, in the case when prices are rises so there is a change in the quantity via average change rate