When do the laws of supply and demand have less effect on prices? Choose one answer.
A.
when a good or service is new
B.
when outside factors cause changes
C.
when buyers search for substitutes
D.
when sellers want to make more money
B. when outside factors cause changes
The correct answer is B. When outside factors cause changes.
The laws of supply and demand determine the prices of goods and services in a market. However, there are certain situations where these laws have less influence on prices. When outside factors, such as government regulations, taxes, tariffs, or subsidies, intervene and cause changes in the market, the impact of supply and demand on prices can be reduced. These external factors can disrupt the normal equilibrium between supply and demand, leading to price fluctuations that are not solely determined by the forces of supply and demand.