Question

Which statement best compares the laws of supply and demand? The two economic laws exist in theory. They have no relation to economics in the real world. The two economic laws exist in theory. They work in practice, but real-world factors can have an effect. The two economic laws work in practice. They apply to real-world economics eighty percent of the time. The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.

Answer 1

The correct answer is B: The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.

Step-by-step explanation:

Answer 2

I believe the answer is: B) The two economic laws exist in theory. They work in practice, but real world factors can have an effect

In real world, external factors beside supply and demand could drive the price that violate the laws of supply and demand.

For example, according to the law, quantity of demand would fall if the price of the product increased. But, external factors could make this law obsolete.

Let's say that natural disaster occurs and destroy most of the nearby stores that sold water bottles. In this situation, the quantity of demand would remain high even if the remaining stores doubled the price of the water bottle.