Question

What type of price is achieved when supply meets demand? In simple terms and in only one sentence.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The type of price achieved when supply meets demand is called equilibrium price.

Answer 2

What does a relative price compare? In simple terms and only one sentence.

Answer 3

[AI-generated answer — Bot GPT 3.5]

A relative price compares the value or cost of one good or service to another, indicating the relationship between their prices.

Answer 4

According to the law of demand, what role do low prices serve for buyers? In simple terms and only one sentence.

Answer 5

[AI-generated answer — Bot GPT 3.5]

According to the law of demand, low prices serve as an incentive for buyers to increase their quantity demanded.

Answer 6

How would supply shift caused by lower costs of production affect price and quantity? In simple terms and only one sentence.

Answer 7

[AI-generated answer — Bot GPT 3.5]

If the supply shifts due to lower costs of production, it would result in a decrease in price and an increase in quantity supplied.

Answer 8

What is price competition? In simple terms and only one sentence.

Answer 9

[AI-generated answer — Bot GPT 3.5]

Price competition refers to a situation in which businesses engage in lowering prices to attract customers and gain a competitive advantage in the market.

Answer 10

Why are banks important to producers? In simple terms and only one sentence.

Answer 11

[AI-generated answer — Bot GPT 3.5]

Banks are important to producers because they provide financial services such as loans and credit, which enable producers to fund their operations and invest in new projects.