Answer to Question #277352 in Microeconomics for Bebe

Question

“Since both the demand and the supply for the good are very blank, I am confident

that prices will change very little no matter what happens.”

Answer 1

These two economic forces influence each other; they are both important for the economy because they impact the prices of consumer goods and services within an economy and the quantities produced and consumed. Price, however, is not the only thing that influences demand. Nor is it the only thing that influences supply.