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a.) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether "true " or "false").
If a product becomes more popular among buyers, then its supply will decrease and its price will rise as shoppers buy more of it from the sellers. (Describe what happens in the S&D market-graphs for the product, to support your true/false answer.)
b.) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether "true " or "false").
If the government grants a subsidy to homebuilders, then the supply of lumber will increase because lumber is an input in building houses. Describe in words what happens in the S&D graph for lumber, to explain your answer.

Respuesta :

A) According to the demand and supply, the statement is false.

Demand and supply

Demand and supply refers the relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy.

Given,

If a product becomes more popular among buyers, then its supply will decrease and its price will rise as shoppers buy more of it from the sellers.

Here we need to find the whether this statement is true or false.

As per the definition of demand and supply, if the product gets popular, then the production that is supply must be increased because of the demand of the product.

But in the given statement, they said that the supply will be decreased, so which is wrong.

To know more about Demand and supply here.

https://brainly.com/question/14741584

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