Discussion 1 - Use your own words and be sure to support your statements with logic and arguments. Post your comments Q1- Recognize how changes in supply and demand affect market outcomes and explain the effect of government regulation on prices?

Q2- Students are required to reply to at least two peer responses to this weeks discussion question. ((((These answers students, I want you to answer the first and second answers)))

1-Demand is an inverse relationship between the quantity of output and the price. If the price of the product falls, the demand for it increases, and vice versa. For example, I have a mocha cup and a latte coffee cup, the price of latte coffee is lower than the price of a mocha cup. In this case, the demand for a cup of latte coffee increases, and the demand for a mocha cup decrease.

Supply is a centrifugal relationship between quantity supplied and price. Suppliers offer less quantity when the price falls and more quantity when the price rises.

For example, a factory producing pasta whose market price is 6 riyals, if it falls to 3 riyals, the quantity supplied decreases because it does not make a profit, but if the price increases to 8riyals, then the quantity supplied to increase. So supply and demand change with the change in the market price of a commodity.

Determining the price is in the interest of merchants, factory owners, companies, and consumers, and it is a price that everyone can bear and the economy does not lose to the state, and it prevents merchants from raising the price from the top Limit.

2- The price of the product changes if consumer demand increases for it and thus leads to an increase in its supply. And when the supply becomes equal to the demand, the equilibrium price and the quantity of supply decrease.

The most prominent things that governments have done in regulating market prices is to impose taxes on products in which the supply increases. After the tax, the price becomes high, At this, the desire of the consumers to demand will decrease.

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