Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Quantity
B
Market
C
Demand
D
Value
Understanding the Answer
Let's break down why this is correct
Answer
Demand is a factor that mainly determines the market price; when demand rises, the price goes up. Supply, on the other hand, mainly determines how much of the good is available, i. e. , the quantity. In the analogy, the counterpart of price for supply is quantity.
Detailed Explanation
When demand goes up, sellers raise the price to balance the market. Other options are incorrect because People often think the whole market changes, but the market is the setting, not the result; Supply is not the same as demand.
Key Concepts
Market Equilibrium
Demand and Supply
Price Mechanism
Topic
Market Equilibrium Analysis
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Which of the following scenarios best illustrates how both demand and supply factors can influence the price of a product in a competitive market?
mediumEconomics
Practice
2
Question 2Which of the following statements correctly describe the relationship between demand and supply in a market economy? (Select all that apply)
hardEconomics
Practice
3
Question 3Demand is to price as supply is to what?
easyEconomics
Practice
4
Question 4Which of the following statements accurately describe price elasticity of demand? Select all that apply.
mediumEconomics
Practice
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