Question

Explain how the products identified in adhere to the supply and demand laws.for each examples

For examples for this

Potatoes : The relationship between price and quantity demand is, an increase in price leads to decrease in quantity demand for potatoes. As the population increases, the demand for potatoes increases.

Notebooks: The relation between price and quantity demand is, an increase in price leads to decrease in quantity demand for notebooks. As the population rises, the demand for notebooks rises.

Jeans: As the price of jeans rises, the demand for jeans falls. As the population rises, the demand for jeans rises

Cookies: As the price of cookies rises, the demand for cookies falls. As the population rises, the demand for cookies rises..

Answer 1

Answer : According to law of demand when price rise then the quantity demanded decrease and vise versa. When population increase then the demand for product increase.

According to the law of supply when price rise then quantity supplied increase and when price fall then quantity supplied decrease. When production level increase at existing price level then the supply increase

1) Potatoes : Here potatoes follows the law of demand. Because here when price rises then quantity demanded decreases for potatoes. And due to increase in population the demand increases.

2) Notebooks : Here notebooks follows the law of demand. Because here when price rises then quantity demanded decreases for notebooks. And due to increase in population the demand increases.

3) Jeans : Here first line about jeans does not follow the law of demand. But second line about jeans is correct. Because here due to increase in price level the demand level falls instead of quantity demanded. But due to increase in population the demand increases.

4) Cookies : Here first line about cookies does not follow the law of demand. But the second line about cookies is correct. Because here due to increase in price level the demand level falls instead of quantity demanded. But due to increase in population the demand increases.