1. True - Everything shifts up (higher) as there is more supply and more demand. Imagine if you have a graph with the x-axis being your supply and the y-axis your demand, then the point of equilibrium (meaning the demand & supply cross) will be higher if both increase.
2. False - As the intensity of the demand alone did not increase, because there is no new shortage of supply. So the price will remain the same. (actually in a more complex real life scenario, the price would also probably go down, because of economies of scale in providing goods in larger quantities
3. If the supply increases more, the price will go down as basically the sellers will increase but the buyers did not, so buyers will be able to say "wait a minute, I won't pay that much anymore, there is this other guy selling the same thing who has no buyer for it!'
Answer:
Supply
Explanation:
Supply is the economic term that describes the amount of a product that firms as willing to sell at different price levels. The price of the product plays a major role in determining the quantity of supply. As per the law of supply, the higher the price, the higher the quantity firms will be willing to supply.
Although the price affects supply, several other such as the price of related goods, cost of inputs, production technology, and government factors influence supply. Supply can be associated with a specific price, or all possible prices, as illustrated in a supply curve.
Answer:
C. Involves statements that can be proven true or false
Explanation:
Positive Economics includes objective statements, based on factual data, describing 'what actually is'. The statements describe economic issues & cause - effect relationship, can be tested or proved.
Eg : The inflation rate in India in 2019 was xyz %.
The statement is a factual data description of an actual economic issue, which can be tested.
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