Running Head DEMANDS OF ECONOMYAbstractThis paper is intended to briefly explain and clarify the errors assigned in pageseventy of the textbook. Questions seven and eight are expressed wrongly and the solutionto the correct way of grammatically writing them will be further stated.
Running Head DEMANDS OF ECONOMY7) a)Demand increases, causing prices to rise. Higher prices cause demand to fall.Therefore, prices fall back to their original levels.Quantity demanded refers to the total amount of a product that an individualhousehold is willing to purchase at a given price.A demand schedule graphically shows thenumbers of a service or good that a household would buy at different prices. Demandincreases, causing prices to rise. Higher prices cause demand to fall. Therefore, prices fallback to their original levels. An increase in demand causes such product to short or run outin the stock at the current price. In order for the supplier to purchase more for his or her