Economists say inconsistent things. They say ''as price falls, demand rises but as demand rises, price rises''. Defend or Refute.

Economists say inconsistent things. They say ''as price falls, demand

1.	Economists say inconsistent things. They say ''as price falls, demand rises but as demand rises, price rises''. Defend or Refute.
Answer» <html><body><p></p>Solution :The statement is defended. It is the cause and effect relationship between two concerned variables price i.e., if price falls, its <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> rises or <a href="https://interviewquestions.tuteehub.com/tag/expands-2076032" style="font-weight:bold;" target="_blank" title="Click to know more about EXPANDS">EXPANDS</a>. <br/> 2. Cause and effect relation between Price and Demand and supply. Price of a <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> is <a href="https://interviewquestions.tuteehub.com/tag/determined-949906" style="font-weight:bold;" target="_blank" title="Click to know more about DETERMINED">DETERMINED</a> by its demand and supply. If demand of a commodity rises, the <a href="https://interviewquestions.tuteehub.com/tag/excess-978535" style="font-weight:bold;" target="_blank" title="Click to know more about EXCESS">EXCESS</a> demand (supply remaining unchanged) will create competition among buyers and push the price up and the price rises. Hence the statement is defended.</body></html>