Asked by Braxton Graves on Jun 09, 2024
Verified
Which statement is true?
A) Rent and wages,but not interest,are determined by supply and demand.
B) Wages and interest,but not rent,are determined by supply and demand.
C) Rent and interest,but not wages,are determined by supply and demand.
D) Rent,interest,and wages are determined by supply and demand.
Supply and Demand
An economic model explaining how the price and quantity of goods and services are determined in a market.
Rent
A periodic payment made for the use of land or a building to the owner by the tenant.
Wages
Payments made to workers for their labor, typically calculated on an hourly, daily, or piecework basis.
- Understand the interaction among market dynamics in establishing wages, interest rates, and rental prices.
Verified Answer
IK
inder khairaJun 11, 2024
Final Answer :
D
Explanation :
Rent, interest, and wages are all determined by supply and demand. The amount of rent charged will depend on how many people are looking for a particular property and how many properties are available to rent. Similarly, the level of interest on loans will depend on the supply of funds available from lenders and the demand for loans from borrowers. Wages are also determined by supply and demand, as employers will pay workers the market rate that reflects the supply of available workers and the demand for labor in their industry.
Learning Objectives
- Understand the interaction among market dynamics in establishing wages, interest rates, and rental prices.