How do price changes drive markets toward equilibrium?
A. They set new price floors and ceilings.
B. They increase or decrease supply or demand.
C. They ensure that prices are fair.
D. They prevent inflation or deflation.

Question

How do price changes drive markets toward equilibrium?
A. They set new price floors and ceilings.
B. They increase or decrease supply or demand.
C. They ensure that prices are fair.
D. They prevent inflation or deflation.

anonymous · Answer

B

anonymous · Answer

Perhaps B

angela210793 · Answer

Not sure if I'm getting this right....but price changes do not increase D or S

anonymous · Answer

ill give yo my logic when prices will go lower there will be more demand for it eg.   you buy a sweet every week costing .50, when that sweet goes to .25 then you will buy 2. And if it goes ore lower law of diminishing returns will kick in

angela210793 · Answer

I KNOW WHAT U MEAN...BUT IN WHAT U JUST WROTE DOESN'T INCREASE THE DEMAND...BUT THE QUANTITY DEMANDED AND THERE'S A DIFFERENCE BETWEEN *DEMAND* AND *QUANTITY DEMANDED*

angela210793 · Answer

oops...sorry didn''t want to type it in caps lock

anonymous · Answer

Anglela is correct, the question is badly stated.  A change in demand is a shift of the demand curve, a change in quantity demanded is a movement along the demand curve.  B is the best of the answers given, but it is not correct.