Well,
The answer would be the number 3
why? because in the beginning when Ferdinand de Lesseps, a french engineer who built the swiss canal decided to create one in the isthmus of Panama due to its ideal location and width to save a lot of time and money on travels, they brought over from France workers and machines, used to create the swiss canal previously, but due to the clay soil and the tropical conditions they quickly broke, forcing workers to do most of the work manually.
Also, due to the heat and the still water, mosquitoes carrying different diseases like malaria and dengue, swarmed the area biting and infecting the workers, ultimately killing most.
Making them give up the whole project.
The correct answer is <span>A. Government intervention is needed to guarantee that Americans will support the war.
They faced similar problems like they did in world war one. The citizens thought a lot about being isolated and didn't want meddling in European affairs, while they also had many people of different ethnicity who felt differently about the war. The country needed to interfere to get support for participation in the war and they did get it eventually.</span>
Typically changing prices only affect supply and demand when one creates artificial demand for it. In almost any cases, it is typically the supply and demand that affects the price changes.
We must firstly understand how supply and demand affect changing prices before we can understand the opposite effect. For example, if there is 100 units, and there are only 50 buyers, the supply is more than the demand. To generate artificial demand therefore, the supplier may lower the prices in an effort to sell off all units. On the other hand, if there is 100 units, but there are more than 100 buyers, than the supplier may raise the prices. This lowers the demand for the product as well as maximizing profits. This example assumes that there is only one supplier of the unit that is in demand.
If however, the supplier has competitors within the field (and is not bound by law to set a certain rate), they may change the prices to be lower than their competitors, in an effort to increase more demand for the prices. It would artificially drive down prices, thereby making profits less. If competitors are not able to survive with less profit and/or be able to lower their own prices, they would be forced to go out of business, either by closing or selling their shops. In turn, when the original company buys up their competitors assets, they then hold a monopoly or close to a monopoly of the given field. This allows them to artificially change the price on their own discretion, typically known for the term <em>price-gouging</em>. Historically in the United States, this has occurred, especially in the oil industry, but price-gouging of many consumer necessities have been banned and a official rate has been set for them.
Essentially, in a true supply and demand, changing a price to be higher than market value may lead to a lower demand, and therefore a surplus of the product, which leads to a artificial low price, while changing a price to be below market value may generate higher demand, which in turn leads to a artificial high price.
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