Factors Influencing Demand and Supply Quiz

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Factors affecting demand and supply are not independent of each other.
Changes in consumer income can affect demand, as an increase in income can lead to an increase in demand, and vice versa.
Changes in production costs can affect supply, as an increase in production costs can lead to a decrease in supply, and vice versa.
Changes in price can affect both demand and supply, as an increase in price can lead to a decrease in demand and an increase in supply, and vice versa.
Changes in population can affect both demand and supply, as an increase in population can lead to an increase in demand and supply, and vice versa.
Changes in government policies can affect both demand and supply, as policies such as taxes, subsidies, and regulations can influence demand and supply.