Question

Which of the following is a correct statement regarding supply and demand? A. Supply and demand have a direct relationship. B. Supply and demand have an indirect relationship. C. Price effects supply and demand the same way. D. Demand is based on supply.

Answer 1

B) Supply and demand have an indirect relationship.

Step-by-step explanation:

The demand for a good or service has an inverse relationship with the price of the good or service, i.e. as the price increases, the quantity demanded decreases. The supply of a good or services has a direct relationship with the price, i.e. as the price increases, the quantity supplied increases.