----------------------2nd

The law of demand states that as price decreases, quantity demanded increases.

• True

• False

The substitution effect explains why consumers buy more of a product when its price rises.

• True

• False

The income effect means that lower prices reduce consumers' purchasing power.

• True

• False

Market equilibrium occurs when quantity demanded equals quantity supplied.

• True

• False

Higher production costs typically lead to an increase in supply.

• True

• False

A rise in the price of rice in the Philippines will likely decrease the quantity demanded.

• True

• False

Natural disasters can disrupt supply and lead to higher prices.

• True

• False

Government price controls always lead to increased market efficiency.

• True

• False

Seasonal changes can affect demand for agricultural products.

• True

• False

Understanding demand and supply is not essential for analyzing market behavior.

• True

• False