2
QuizMultiple Choice

Entrepreneurship — Unit test

Question 2 • IL-Economics

Which statement best compares the laws of supply and demand?

Answer
A
The two economic laws exist in theory. They have no relation to economics in the real world.
B
The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.
C
The two economic laws work in practice. They apply to real-world economics eighty percent of the time.
D
The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.

Explanation

The laws of supply and demand describe patterns that generally occur in real markets: higher prices tend to reduce quantity demanded and increase quantity supplied, all else being equal. In practice, factors such as income, preferences, production costs, and government policies can affect those patterns. So the laws are useful in the real world, but they do not predict every situation perfectly; choice B captures this.

AI-written and checked against the verified answer.

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