0
Explain the process of supply and demand and how prices rise and fall?
Fb100001402355253
Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
When according to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
Use economic theory to explain why there might be such a range of prices in airline tickets?
Very simply - supply and demand
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
How is today's gold prices increase or decrease?
as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.
Who determines prices?
supply and demand
What determines the prices of goods and services in the product market?
Supply and demand. Supply and demand determines the prices of goods and services in the market.
What is in a free enterprise economy supply and demand affect the of a product?
In a free enterprise system, when supply is low and demand is high, prices are higher, but when supply is high and and demand is low, prices are lower.
Theory of demand supply?
The theory of supply and demand is that when supply are plentiful, they are typically more affordable and easier to find. When supply is low, demand and prices increase as a result.
What affects gas prices?
Supply and demand.
When the government prevents prices from adjusting naturally to supply and demand?
Government regulation occurs when the government prevents prices from adjusting naturally to supply and demand.
Sentence with supply and demand?
Her supply of tight sweaters increases the demand for her as a date on the weekend.
