1. In a mixed economy the government may be a producer of private goods, for example, steel and motor cars.
2. An increase in the price of an input will lead to a reduction in the demand for that input.
3. The firm can sell as much as it wants at the market price.
4. A consumer's tastes and income as well as prices of other goods influence his or her demand.
5. Consumers almost always respond to an increase in a good's price with a reduction in the quantity of it consumed by them.