Respuesta :
Food and energy prices often complicate the measurement of inflation because supply and demand for these products (A) often change, creating temporary changes in prices.
What are supply and demand?
- In microeconomics, supply and demand is an economic model of market price determination.
- It assumes that all else being equal, in a competitive market, the unit price for a specific good or other traded item, such as labor or liquid financial assets, will fluctuate until it settles at a point where the quantity demanded (at the current price) equals the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.
- It is the theoretical foundation of modern economics.
- The aggregate demand-aggregate supply model has also been used in macroeconomics to describe how the quantity of total output and the aggregate price level can be set in equilibrium.
Therefore, food and energy prices often complicate the measurement of inflation because supply and demand for these products (A) often change, creating temporary changes in prices.
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Complete question:
Food and energy prices often complicate the measurement of inflation because supply and demand for these products ______.
A. Often change, creating temporary changes in prices.
B. Are stable in the short run and unstable in the long run.
C. Typically lags behind other goods and services.
D. Are constant, so equilibrium prices rarely change.
