how do changing prices affect supply and demand?\n○ as price increases, both supply and demand increase.\n○…

how do changing prices affect supply and demand?\n○ as price increases, both supply and demand increase.\n○ as price decreases, both supply and demand decrease.\n○ as price increases, supply decreases, but demand increases.\n○ as price decreases, supply decreases, but demand increases.

how do changing prices affect supply and demand?\n○ as price increases, both supply and demand increase.\n○ as price decreases, both supply and demand decrease.\n○ as price increases, supply decreases, but demand increases.\n○ as price decreases, supply decreases, but demand increases.

Answer

Brief Explanations:

The law of supply states that as price increases, quantity - supplied increases and vice - versa. The law of demand states that as price increases, quantity - demanded decreases and vice - versa. So when price decreases, supply decreases (less incentive for producers) and demand increases (more affordable for consumers).

Answer:

As price decreases, supply decreases, but demand increases.