What does supply-and-demand analysis involve?

Question

Quizplus · Accepted Answer

Supply-and-demand analysis involves comparing the old and new equilibrium points to understand how changes in supply, demand, or both affect product prices. Option A may be a part of the analysis, but it does not capture the whole picture. Option B and D are incorrect, as supply-and-demand analysis is not concerned with buyer or seller friction, but rather with the fundamental economic factors that drive price changes.

What Does Supply-And-Demand Analysis Involve