How do lower prices tend to affect demand?

A. They tend to increase the availability of a product.
B. They tend to decrease the availability of a product.
C. They tend to increase the interest in a product.
D. They tend to decrease the interest in a product.

Demand refers to how much of a product the public wants. When we say that demand is high, we mean that the good is desired and sold in large quantities. When a product has a low price, consumers tend to be more interested in it and to buy more of it, which means that the demand rises.

Answer Link

biruci biruci · Answer 2 · 2019-10-27T19:51:04+01:00

Lower prices tend to affect demand because they tend to increase the interest in a product. This is comprised of the four basic laws of supply and demand.

EXPLANATION:

The four basic laws of supply and demand are:

1. If supply increases while demand remains, it lowers the equilibrium price and raises the quantity.

2. If supply decreases while demand remains, it raises equilibrium price and lowers quantity.

3. If demand increases while supply remains, it raises equilibrium price and raises the quantity.

4. If demand decreases while supply remains, it lowers the equilibrium price and lowers the quantity.

The most fundamental laws in economics are the law of supply and demand. Certainly, nearly every economic event or occurrence is a product of the interaction of the law of supply and demand. The supply’s law asserts that the number of goods supplied rises when the market price rises and falls when the price falls. In contrast, the law of demand says that the number of goods demanded decreases when prices rise and vice versa. One purpose of markets is to seek “equilibrium” costs that balance the supplies of and demands for services and goods. An equilibrium price (so-called “market-clearing” price) is one that each producer can trade all they want to generate and each consumer can purchase all they demand.

LEARN MORE:

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

• Using the supply and demand curve above, which statement is TRUE? https://brainly.com/question/13137307

KEYWORDS : supply, demand, price, the law of supply and demand

Subject : Social Studies

Class : College

Sub-Chapter : The Law of Supply and Demand

How do lower prices tend to affect demand? A. They tend to increase the availability of a product. B. They tend to decrease the availability of a product. C. They tend to increase the interest in a product. D. They tend to decrease the interest in a product.

Respuesta :

Otras preguntas

How do lower prices tend to affect demand?

A. They tend to increase the availability of a product.
B. They tend to decrease the availability of a product.
C. They tend to increase the interest in a product.
D. They tend to decrease the interest in a product.