Question

when there is a shortage producers take the money they earn from selling products and use it to buy the things they want and need True or Flase

Answer 1

this sounds like the previous question

is there a typo?

Answer 2

oops yes it is one second please

Answer 3

when there is a shortage producers raise the price of the good so that demand will be lowered True or False

Answer 4

again, what do you think and why?

Answer 5

ok ummm false because it wont make sense to raise the price if there is a shortage

Answer 6

but prices actually do rise when there is a shortage

it happens all the time

Answer 7

however...they don't raise the price because they want to lower demand

producers ALWAYS want greater demand. Think about it. If you're selling a product, do you want more or less people to want it? You want more so you can sell more and get more money. This is true even if there's a shortage because eventually you'll produce more down the road. So the idea they're raising prices to lower demand is silly. They are raising prices because they can get away with it in a free market. They want more money ultimately and that's why they're doing it (it has nothing to do with wanting to lower demand)

Answer 8

so the statement "when there is a shortage producers raise the price of the good so that demand will be lowered" is half true and half false


"when there is a shortage, producers raise the price of the good"...that's true and it happens all the time

but...

"so that demand will be lowered" is false because producers always want higher demand

Answer 9

aahh ok thats what i was i thinking its a little bit silly because people wont buy a product if the price is to high and the demand is to low but you can get away with from a free market economy dident know that thank you! :)

Answer 10

so its true ?

Answer 11

well yes, the producers can't raise the price forever. Eventually people will simply not have the money to buy it, but before that, people will start to lose interest because people have set limits on what they think prices should be

and if something is half true and half false, then overall it's false because they're asking if the entire statement is true...which it's not

Answer 12

ohh brain buster lol.. so its defientially false

Answer 13

yes it is

Answer 14

ok thank you :)

Answer 15

sure thing