Question

The concept of supply and demand is often called the heart and soul of economics. It is the foundation for much of what is studied in the field, and understanding how supply and demand affect the economy can help us to recognize economics everywhere in our daily lives. The supply and demand infographic highlights basic concepts such as the laws of supply and demand, changes in demand and supply versus changes in the quantity demanded and the quantity supplied, the determinants of demand and supply, and market equilibrium.

In a Word Document answer the following questions and then upload the assignment below.
1- In a brief and clearly expressed manner Define the law of demand.
2. In a brief and clearly expressed manner Define the law of supply.
3-Give an example of how sales flyers at grocery store influence your personal grocery shopping habits. Explain how store sales relate to the law of demand.

Answer 1

The law of demand states that as the price of a good decreases, the consumer demand for it will increase, which is illustrated by sales flyers at grocery stores leading to increased purchases. The law of supply indicates that higher prices incentivize producers to supply more.

Step-by-step explanation:

The law of demand states that, ceteris paribus (all other factors being equal), as the price of a good or service decreases, consumer demand for it will increase, and vice versa. This inverse relationship can be represented graphically by a downward sloping demand curve in a price-quantity axis. Conversely, the law of supply posits that ceteris paribus, as the price of a good or service increases, producers will be willing to supply more of it to the market, reflecting a direct relationship that is shown as an upward sloping supply curve.

Sales flyers at grocery stores are an excellent example of demand in action. When grocery stores advertise sales, they effectively lower the price of certain goods. According to the law of demand, this should increase the quantity demanded as the goods become more affordable to consumers, influencing personal grocery shopping habits by encouraging the purchase of sale items over non-discounted goods.