1.According to the law of demand, when the price of an item goes up, the quantity demanded
a. stays at the same level. c. falls.
b. rises. d. adjusts
2. According to the law of supply, higher prices prompt producers to
a. increase demand. c. produce less.
b. maintain current production. d. produce more.
3. When the price of a good is too high for consumers, they look for
a. inelastic demand. c. inflation.
b. substitutes.
I think 1. C, 2. D, 3. D.
1 and 2 are right.
3? What is D?
luxury items.
I disagree with your answer for 3.
Look up the definitions of any words you don't know.
It B right?
Right.
To determine the correct answers to the questions, let's explain the concepts behind them:
1. The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded. In other words, when the price of an item goes up, the quantity demanded tends to decrease. This is because consumers are less willing or able to purchase the item at a higher price. So, the correct answer to question 1 is c. falls.
2. The law of supply states that there is a direct relationship between the price of a good and the quantity supplied. As the price of a good increases, producers are incentivized to produce more of it in order to take advantage of the higher profits. Therefore, the correct answer to question 2 is d. produce more.
3. When the price of a good is too high for consumers, they tend to seek alternatives or substitutes. Substitutes are goods that can be used in place of another good, providing a similar function or benefit. By finding substitutes, consumers can satisfy their needs or desires without having to pay the high price of the original good. So, the correct answer to question 3 is b. substitutes.
Based on these explanations, your answers are correct: 1. c, 2. d, 3. b.