Question

The price of a product relies heavily on the relationship between the supply of that product and the customer demand for the product. Which of the following best describes this relationship?

A.
Prices will decrease when demand is high and supply is low.
B.
Prices will increase when supply is high regardless of demand.
C.
Prices will decrease when demand is low and supply is high.
D.
Prices will increase when demand is low and supply is high.

Answer 1

hana is 4 years older than her brother

Answer 2

Answer: C. Prices will decrease when demand is low and supply is high.

Step-by-step explanation:

The relationship between supply and demand is a fundamental concept in economics. When the supply of a product is high and the demand is low, this means that there is an oversupply of the product, and sellers will have to lower the price to attract buyers.

On the other hand, when the demand for a product is high and the supply is low, this creates a scarcity of the product, and sellers can charge higher prices because buyers are willing to pay more to get it. So, option C is the correct answer: prices will decrease when demand is low and supply is high.