NEDP - National External Diploma Program Practice Test
NEDP Consumer Economics
What is 'supply and demand' and how does it affect price?
Select your answer
A
When supply decreases or demand increases, prices generally rise; when supply increases or demand decreases, prices generally fall.
B
When supply increases, prices always rise regardless of demand.
C
Demand has no effect on price in a free market.
D
Supply and demand only affect the prices of luxury goods.
Hint
