When do the laws of supply and demand have less effect on prices?
(1 point)
Responses
when a good or service is new
when a good or service is new
when outside factors cause changes
when outside factors cause changes
when buyers search for substitutes
when buyers search for substitutes
when sellers want to make more money
This question is a bit confusing because all of the options provided can affect the laws of supply and demand and subsequently impact prices. However, if we had to choose one option that may have less effect on prices, it would be when a good or service is new. When a new product or service is introduced to the market, the demand may not be fully established, and sellers may not have a clear understanding of the supply needed, leading to potential fluctuations in pricing. However, it is important to note that this option is not the only factor that can influence prices. Outside factors such as changes in technology, government regulations, economic conditions, and buyer behavior can also have significant impacts on price fluctuations.
i need 1 questions
In what situations do outside factors have the most significant impact on the laws of supply and demand and subsequently affect prices?
The laws of supply and demand have less effect on prices when a good or service is new and when outside factors cause changes. Additionally, when buyers search for substitutes or when sellers want to make more money, the influence of supply and demand on prices may also be reduced.
The correct answer is "when outside factors cause changes."
The laws of supply and demand can have less effect on prices when there are external factors that cause changes in the market conditions. These external factors can include things like government regulations, natural disasters, changes in technology, and shifts in consumer preferences. When these outside factors influence the market, they can disrupt the usual relationship between supply and demand, leading to price fluctuations that are not solely determined by the interaction of supply and demand forces.
To arrive at this answer, you can rule out the other options by understanding the basic principles of supply and demand. When a good or service is new, it can actually have a significant impact on prices as demand may be high and supply may be limited initially. When buyers search for substitutes, it implies that there are alternative goods available in the market, which can increase competition and therefore affect prices according to the laws of supply and demand. Similarly, when sellers want to make more money, they may adjust their prices based on the demand and supply dynamics in the market.
Hence, in this case, it is important to recognize that external factors that cause changes in the market conditions can reduce the influence of supply and demand on prices.