In capitalism, supply and demand should accomplish which of the following?
Anthony is correct.
1.C
2.B
3.B
c
b
b
In capitalism, supply and demand should accomplish which of the following?
have enough tension between the two to create the need for both
Mercantilism is best described by which of the following statements?
An example of a command economy
Which of the following is true about capitalism?
It was first described by Adam Smith.
In capitalism, the interaction between supply and demand is a fundamental principle that determines market prices and quantities. It is associated with the concept of equilibrium, where supply and demand are balanced, leading to an efficient allocation of resources. Supply represents the quantity of goods or services that producers are willing to sell at a specific price, while demand signifies the quantity of those goods or services that consumers are willing to buy at a given price.
The main goal of supply and demand in capitalism is to establish market prices that reflect the preferences and willingness of both buyers and sellers. When supply exceeds demand, there is a surplus, pushing prices down. Conversely, when demand surpasses supply, there is a shortage, leading to higher prices. Through this process, supply and demand work together to determine the equilibrium price and quantity at which buyers and sellers are satisfied.
To comprehend how supply and demand accomplish certain outcomes in capitalism, it is essential to observe the market dynamics. For example:
1. Price determination: The balance between supply and demand determines the market price of a good or service. When supply is high and demand is low, prices will decrease, leading to affordability for buyers. Conversely, if demand is high and supply is low, prices will rise, indicating a higher willingness to pay by consumers.
2. Resource allocation: Supply and demand help allocate resources efficiently. When demand for a particular product increases, it signals firms to produce more of that product, thereby allocating resources towards meeting consumer preferences. Similarly, when demand for a product decreases, resources can be reallocated to different sectors or industries with higher demand.
3. Competition: In a free market economy, supply and demand promote competition among producers. If there is high demand for a product, it attracts more producers to enter the market, increasing competition. This competition can lead to innovation, lower prices, and improved quality in order to attract and retain customers.
Overall, supply and demand in capitalism are crucial factors in determining prices, promoting efficient resource allocation, and encouraging competition. By understanding the interplay between these two forces, market participants can better assess and anticipate market outcomes.