Question

Which of these statements explains the term price? A) The money spent by a seller to advertise a product B) The money spent by a manufacturer to make a product C) The money spent by a buyer to purchase a product

Answer 1

B

Answer 2

Wow.

Answer 3

Suppose farmers could grow only a limited number of tomatoes this year. What would be the effect of this decrease in production on the price of tomatoes?

A) The prices of tomatoes would increase.
B) The prices of tomatoes would decrease.
C) The prices of tomatoes would remain stable .

Answer 4

how are demand and price related? how are demand and supply related?

Answer 5

@Edutopia Thank you for helping him with it this time, rather than giving the answer (albeit wrong).

Answer 6

Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity.

Answer 7

@geoffb i explained it in an earlier post, i understand your concern but this was a repost, and i was summerizing. how is it not B though, am i mistaking term for short run/long run

Answer 8

It's a poorly written question, since farmers can only grow a limited number of tomatoes *every* year (not just this one). But that's beside the point. They're saying there's a decrease in production; what would happen to the demand and supply curves?

Answer 9

@Edutopia The money spent by a producer to make a product is cost, not price.

Price is such a commonly-used concept, that I was shocked he even asked the question. The price is how much a consumer (buyer) pays for a product or service.

Answer 10

@geoffb ah i read the question wrong

Answer 11

No problem. I've been there! :)