📚 Learning Guide
Demand and Supply Basics
medium

Arrange the following steps in the correct order to illustrate the impact of a price increase on the market equilibrium for a product: A) Suppliers increase the quantity supplied, B) Price rises, C) Demand decreases, D) Market reaches a new equilibrium.

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Learning Path
Learning Path

Question & Answer
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Choose AnswerChoose the Best Answer

A

B → A → C → D

B

A → C → B → D

C

B → C → A → D

D

C → A → B → D

Understanding the Answer

Let's break down why this is correct

When the price goes up, sellers see a chance to earn more and they raise how much they sell. Other options are incorrect because This option assumes buyers reduce their wants before the price changes; It suggests demand falls before the price moves.

Key Concepts

Market Equilibrium
Law of Demand and Supply
Price Elasticity
Topic

Demand and Supply Basics

Difficulty

medium level question

Cognitive Level

understand

Deep Dive: Demand and Supply Basics

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Definition
Definition

Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.

Topic Definition

Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.

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