11
QuizMultiple Choice

The Law of Supply and Demand — Quiz

Question 11 • Personal Finance and Economics

Which statement best compares the laws of supply and demand?

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

Explanation

The laws of supply and demand describe general relationships: when other factors stay the same, price affects how much producers supply and consumers demand. They are useful in real markets, but factors such as regulations, changing preferences, or shortages can affect what happens. So the best choice is that the laws exist in theory and work in practice, while real-world factors can influence them.

AI-written and checked against the verified answer.

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