how do changing prices affect supply and demand?\nas price increases, both supply and demand increase.\nas…
how do changing prices affect supply and demand?\nas price increases, both supply and demand increase.\nas price decreases, both supply and demand decrease.\nas price increases, supply decreases, but demand increases.\nas price decreases, supply decreases, but demand increases.
Answer
Answer:
D. As price decreases, supply decreases, but demand increases.
Brief Explanations:
The law of supply states that quantity supplied is directly related to price (higher price, more supply). The law of demand states that quantity demanded is inversely related to price (lower price, more demand).