Asked by Ashley Hammerscchmidt on May 13, 2024
Verified
One of the factors that sets prices is how much consumers want the goods or services.This is called:
A) markets
B) productivity
C) the division of labor
D) demand
E) supply
Demand
Refers to the desire or need for products and services by consumers, often accompanied by the power to purchase them.
Prices
The amount of money required to purchase goods or services, set by the interplay of supply and demand in a market.
Consumers
Individuals or entities that purchase goods or services for personal use rather than for manufacturing or resale purposes.
- Understand the basic elements that influence market economics including demand and supply.
Verified Answer
LN
Lupita NailanyMay 20, 2024
Final Answer :
D
Explanation :
"Demand" is the factor that reflects how much consumers want a certain good or service. The higher the demand, the higher the price that can be charged. Supply also plays a role in setting prices, but it is ultimately the balance between supply and demand that determines the price point. Markets, productivity, and division of labor are all related to the economy but not specifically related to setting prices based on demand.
Learning Objectives
- Understand the basic elements that influence market economics including demand and supply.