Which three statements are true as they relate to supply and demand? As supply rises, prices generally decrease. As demand decreases, costs generally increase. As supply decreases, prices increase. The average rate of change describes how much a quantity changes as price increases. As demand rises, the price of the product decreases.

Question

Mathematics

Skylar Griffith

9 August, 13:15

Which three statements are true as they relate to supply and demand? As supply rises, prices generally decrease. As demand decreases, costs generally increase. As supply decreases, prices increase. The average rate of change describes how much a quantity changes as price increases. As demand rises, the price of the product decreases.

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Answers (1)

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Theodore Barton · Answer 1

As demand rises, the price of the product decreases

As demand decreases, costs generally increase

The average rate of change describes how much a quantity changes as price increases.

Step-by-step explanation:

As we know that

The price and the supply has a direct relationship between each other according to the law of supply that means if the price of the product increases the supply of the product is also increases and vice versa

And, the price and the demand had an inverse relationship between each other according to the law demand that means if the price of the product increases the demand of the product is decreased and vice versa

Plus if there is an increase in prices so how much quantity changes are computed by considering the average rate of change

Therefore, these above three statements are true.