Question

select the correct answer from each drop-down menu.

choose an answer is the regulating force in the marketplace. if the number of companies producing an item increases, the price of the item will be choose an answer than before. choose an answer people will buy the item because it is cheaper.

Explanation:

Identify the regulating force in a market economy

In classical economics, self-interest acts as the motivating force that drives individuals and businesses to action, while competition acts as the regulating force that keeps prices fair and ensures quality in the marketplace.

Analyze the effect of an increase in the number of producers

When the number of companies producing an item increases, the market supply of that item increases. According to the principles of supply and demand, an increase in supply, with demand remaining constant, leads to a decrease in the equilibrium price. Therefore, the price of the item will be lower than before.

Apply the law of demand to consumer behavior

According to the law of demand, there is an inverse relationship between price and quantity demanded. When the price of an item decreases (making it cheaper), the quantity demanded increases, meaning more people will buy the item.

Answer:

Select the correct answer from each drop-down menu.

Competition is the regulating force in the marketplace. If the number of companies producing an item increases, the price of the item will be <blank>lower</blank> than before. <blank>More</blank> people will buy the item because it is cheaper.