Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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