Question

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.

Answer 1

The statements that are true as they relate to supply and demand are: as supply rises, prices generally decrease; as demand decreases, prices generally increase; as supply decreases, prices increase.

Step-by-step explanation:

Supply and demand are fundamental concepts in economics. The law of supply states that as supply increases, prices generally decrease. This is because when there is a higher quantity supplied, producers compete to sell their products, leading to lower prices. On the other hand, the law of demand states that as demand decreases, prices generally decrease. When there is lower demand for a product, sellers may lower prices to attract more buyers.

Additionally, the statement that as supply decreases, prices increase is also true. When the quantity supplied decreases, the scarcity of the product can drive up prices as buyers are willing to pay more for limited supply. The average rate of change refers to how much a quantity changes as the price increases. It is not directly related to supply and demand dynamics, but rather focuses on the relationship between quantity and price. As demand rises, the price of a product generally increases. This is because as more people want to buy a product, sellers can charge higher prices since there is higher demand.

Answer 2

As supply rises, prices decrease.

And The average rate of change describes how much a quantity changes as prices increases

As supply decreases, prices increase. It seems logical but I'm not 100% positive on the last one. I know the first 2 are right.