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What is indirect demand?
Indirect demand refers to the demand for goods or services that arises from the demand for another good or service. This can occur when one product is necessary for using another product, causing a ripple effect in the demand chain. For example, the demand for automobile tires is indirectly driven by the demand for automobiles.
What if supply exceeds demand?
When supply exceeds demand, it is known as a surplus.Surpluses only occur among rational producers and consumers if a regulatory price floor is in effect (that is, the government mandates that the price of the good or service in question not go below a certain level). If no such regulation is in place, the price of the good or service will lower to the point where supply and demand are equal to one another.If the price of the good is lowered, then demand will increase.
What is the one price system?
Supply and Demand
Law of supply and demand which one starts?
In the law of supply and demand, the first to start is the demand as customers are wanting the particular service or product that is being offered.
What is economic parameter?
An economic parameter is a structural model. It usually explains how one thing affects another, such how supply affects demand.
Supply increases and demand is constant?
if there is an increase in supply ,there is a corresponding increase in demand. perishable goods such as fresh tomatoes may increase in supply because there are in season.THIS IS ONE OF THE EXCEPTION TO THE RULE
What is one reason for regional wage differences?
The law of supply and demand.
Why are prices generally higher for products that are scarce?
One word: Demand. Do some research on the "Law of Supply and Demand".
How does law and supply and demand operate?
Basically, when demand is higher than supply, prices increase. When supply is higher than demand, prices decrease. If there's a lot of something, but no one wants it, that item will be cheap. If there are only a few of something that a lot of people want, it will be expensive.
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
Demand for one good or service that is determined by demand for another good or service is?
derived demand
How does the law of supply and demand opperate?
Think of Supply and Demand as two weights at opposite ends of a seesaw. When Supply is the heaviest the value of the item will go lower. When Demand is the heaviest the value of item will go higher. This is how all markets work.
