Question

Choose the statements that CORRECTLY describe the result a price change will have on the supply of or the demand for a product. Increases in government regulations will cause producers to charge less for their goods. When productive resources decrease in price, producers will make more of a product. A decrease in the price of a complementary good will cause an increase in the price for the other product. A price set above equilibrium price is called a Price Floor. Increases in the number of sellers of a product will cause a decrease in the equilibrium price of that product. A Price Ceiling is the maximum amount of a product a person is willing to pay for a good or service.

Answer 1

All the market fluctuations mentioned here in the question are expressed through changes in both demand and supply or demand or supply in the market.In this case,the second last scenario ,the correct answer would be the last scenario or increase in the number of sellers will cause a decrease in equilibrium price of the product.

Explanation:

When the number of sellers or producers increases in the market,the increase in supply of the good as a result would cause a downward shift in the product price.This will cause an expected increase in the demand for the product.Hence,this is a change in the market situation which induced by the change in the price of the product causing a rise in the product demand.Hence,the last situation mentioned in the question correctly describes the effect of a price change on the supply and/or demand of the product.