📚 Learning Guide
Understanding Demand and Supply
medium

Demand is to quantity demanded as supply is to what?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Price level

B

Quantity supplied

C

Market equilibrium

D

Consumer preferences

Understanding the Answer

Let's break down why this is correct

Answer

Demand is related to the quantity of a product that consumers want to buy at a certain price, while supply is related to the quantity that producers are willing to sell at that same price. So, just as demand refers to the desire and ability of consumers to purchase, supply refers to the desire and ability of producers to offer goods for sale. For example, if a farmer has apples to sell, the supply would be how many apples the farmer is willing to sell at different prices. Therefore, you can say that demand is to quantity demanded as supply is to quantity supplied. This relationship helps us understand how markets work and how prices are determined based on what consumers want and what producers can provide.

Detailed Explanation

Supply refers to how much of a product is available. Other options are incorrect because Some might think supply is linked to price; Market equilibrium is where supply and demand meet.

Key Concepts

Demand and Supply
Elasticity of Demand
Market Behavior
Topic

Understanding Demand and Supply

Difficulty

medium level question

Cognitive Level

understand

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