Answer:
Statements 1,3 and 4 are correct
Step-by-step explanation:
We want to select the three correct statements as related to demand and supply.
Statement 1 is correct
An increased supply would lead to saturation of the market with the product for normal goods. The saturation of the market will surely make the price of the goods in the market decrease
Statement 2 is incorrect
A decrease in demand should drive down the prices of commodities for normal goods
Statement 3 is correct
A decrease in supply means there are less goods in the market. This makes consumers want to fight more to get their share in the market which thus forces up price of these goods
Statement 4 is correct
An increase in demand would make suppliers increase the price they place on their commodities.
