In the markets for individual products, demand tends to be _____ stable than supply. In the aggregate supply/aggregate demand model, aggregate demand tends to be _____ stable than aggregate supply.
A) more; more
B) more; less
C) less; more
D) less; less

Question

Quizplus · Accepted Answer

In the markets for individual products, demand tends to be more stable than supply, which can fluctuate due to various factors such as weather, production issues, and changes in input prices. However, in the aggregate supply/aggregate demand model for the overall economy, aggregate demand tends to be less stable than aggregate supply, which is relatively stable in the short run. Aggregate demand can fluctuate more due to changes in investment, government policy, consumer confidence, and other factors affecting overall spending.

In the Markets for Individual Products, Demand Tends to Be