Question

W much a quantity changes

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
As demand rises, the price of the product decreases.
te increases.​

Answer 1

Statements 1,3 and 4 are correct

Explanation:

We want to select the three correct statements as related to demand and supply.

Statement 1 is correct

An increased supply would lead to saturation of the market with the product for normal goods. The saturation of the market will surely make the price of the goods in the market decrease

Statement 2 is incorrect

A decrease in demand should drive down the prices of commodities for normal goods

Statement 3 is correct

A decrease in supply means there are less goods in the market. This makes consumers want to fight more to get their share in the market which thus forces up price of these goods

Statement 4 is correct

An increase in demand would make suppliers increase the price they place on their commodities.