Critical Reasoning (CR) | ­Economist: Although prices of most precious metals have greatly

­Economist: Although prices of most precious metals have greatly increased in nominal terms (i.e., before adjustment for inflation) over the past century, the inflation-adjusted prices have actually been falling. Since the price of a commodity generally decreases when supply grows relative to demand, and since demand for precious metals has been growing, the supply of these metals on the market must be currentlygrowing.

The economist has concluded thefollowing:

the supply of these (precious) metals on the market must be currentlygrowing

The support for the conclusion is thefollowing:

over the past century, the inflation-adjusted prices (of precious metals) have actually been falling

the price of a commodity generally decreases when supply grows relative to demand

demand for precious metals has beengrowing

We see that the economist has reasoned that, since prices are decreasing and demand is increasing, supply must be increasing.

One thing that we might notice in reading
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Statistics : Posted by MartyMurray • on 21 Feb 2024, 02:17 • Replies 1 • Views 304

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