The laws of supply and demand state that ______.

Question

Quizplus · Accepted Answer

The laws of supply and demand state that as the price of a good increases, the quantity supplied by producers also increases, while the quantity demanded by consumers decreases. Conversely, as the price of a good decreases, the quantity supplied by producers decreases, while the quantity demanded by consumers increases. This is known as the law of demand (consumers buy more at low prices) and the law of supply (producers produce more at high prices). Therefore, choice A is the correct answer.

The Laws of Supply and Demand State That ______