Which of the following is a correct statement regarding supply and demand? A. Supply and demand have a direct relationship. B. Supply and demand have an indirect relationship. C. Price effects supply and demand the same way. D. Demand is based on supply.

B) Supply and demand have an indirect relationship.

Explanation:

The demand for a good or service has an inverse relationship with the price of the good or service, i. e. as the price increases, the quantity demanded decreases. The supply of a good or services has a direct relationship with the price, i. e. as the price increases, the quantity supplied increases.