Question

Using the supply-demand graph, what happens as the price of a good or service increases? A. The quantity of the good or service decreases B. The quantity of the good or service increases C. Demand increases and supply falls D. Demand falls and supply increases

Answer 1

As the price of a good or service increases, the quantity of the good or service decreases.

Step-by-step explanation:

In economics, as the price of a good or service increases, the quantity of the good or service decreases. This relationship is represented by the law of supply, which states that as price rises, the quantity supplied increases, and vice versa. The supply-demand graph shows the supply curve sloping upwards from left to right, indicating that as price increases, the quantity supplied increases.

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