Question

3

Answer 1

Answer:

A, C, and D

Step-by-step explanation:

Let's analyze each option:

A) As supply rises, prices generally decrease. This is true as supply and demand have an inverse relationship. The supply curve has a positive slope, showing that as the quantity supplied increases, the price increases. So, shifting the curve to the right does decrease the equilibrium price (assuming the demand curve doesn't fluctuate).

B) As demand decreases, costs generally increase. This is false because a demand curve shows that as the quantity of demand increases, the price decreases for the product. So, shifting the curve to the left only decreases the equilibrium price (assuming the supply curve doesn't fluctuate).

C) As supply decreases, prices increase. This is true because the supply curve has a positive slope, showing that as the quantity supplied increases, the price increases. So, shifting the curve to the left does increase the equilibrium price (assuming the demand curve doesn't fluctuate).

D) The average rate of change describes how much a quantity changes as price increases. This is true because the supply curve measures how much the quantity supplied increases as the price increases, while the demand curve measures how much the quantity demanded increases as the price decreases.

E) As demand rises, the price of the product decreases. This is false because a demand curve shows that as the quantity of demand increases, the price decreases for the product. So, shifting the curve to the right only increases the equilibrium price (assuming the supply curve doesn't fluctuate).

I've attached an example graph to help you visualize all of these factors.