Answer:
The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is the Price of the good.
Explanation:
All the other things influencing demand and supply curves respectively are kept constant and only price is the factor considered.
If the price of the good increases, then quantity supplied of the goods will increase and if the price decreases, then quantity supplied will decrease.
If the price of the good decreases, then quantity demanded of the goods will decrease and if the price increases, then quantity demanded will decrease.
Refer to the diagrams for demand and supply curves shapes.
Answer:
Price
Explanation:
The construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is Price.
