As price decreases, supply decreases, but demand increases. Option (d) is correct.
Further explanation:
Given:
The options are as follows,
(a). As price increases, both supply and demand increase.
(b). As price increases, both supply and demand increase.
(c). As price increases, supply decreases but demand increases.
(d). As price decreases, supply decreases, but demand increases.
Explanation:
The price of the good depends on the various factors such as supply and demand.
In option (a)
The price doesn’t affect the supply.
Therefore, option (a) is not correct.
In option (b)
If the price decreases the demand will increases.
Therefore, option (b) is not correct.
In option (c)
As price increases the demand will decrease.
Therefore, option (c) is not correct.
In option (d)
As price decreases the demand increases.
As the supply decreases the demand will increase.
If the price of the good decreases and the supply decrease both effect on the demand of the good and this results increase in demand.
Therefore, Option (d) is correct.
As price decreases, supply decreases, but demand increases. Option (d) is correct.
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Answer details:
Grade: High School
Subject: Mathematics
Chapter: Supply and Demand
Keywords: price, supply, demand, price decreases, demand increases, supply decreases, changing, affect.
