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It would make the value of the item decrease.
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If a producer overproduces and sets the price of his product too high to allow him to sell all of his production?
If the availability of a product is high (The result of over production) and its price is also high, then the sales usually comes down. When there is excess availability of stuff, the price tends to go down and to ensure that all the goods are sold, the producer may have to reduce his price. trying to increase the price when surplus supply is there would have a negative effect and the sales may plummet...
How would high oil prices cause inflation?
oil in general is used i production of goods and services.. oil as in petrol oil can be used in manufacturing products and if oil price is high, cost of production would be on the increase so this will result in the increase in the price of that product.
What is the effect of removal of oil subsidy on the Nigeria economy?
Effect of fuel subsidy removal in nigeria economy
What If supply shifts to the left and demand remains constant?
ceteris paribus this would lead to the equilibrium production decreasing, with the price effect depending on the characteristics of the supply relation.
What were the effects of mass production?
One effect was the division/specialization of labor. So whereas once one person would create a product from start to finish, mass production resulted in many workers each building one part of a product.
The study of the production of goods and services would most likely be conducted in what social sciences?
The study of the production of goods and services would most likely be conducted in the field of economics. Economics focuses on the allocation of resources to produce goods and services efficiently and how individuals, businesses, and governments make decisions related to production.
Why would the price of goods increase each time it exchanged hands from Asia to the Middle East to Europe?
The price of the goods would rise to cover the cost of the additional transport and, additionally, make the act of transporting the goods profitable.
What is the making of large quantities of goods that are exactly alike?
Such a term is commonly known as mass production.
Why are goods and services counted in GDP at market price.are there any disadvantage in using market price tonieasure production?
The intention of the measurement is to capture the value of the total production, which would be market price as estimated by the mechanisms in place to monitor and report GDP, A disadvantage is that it can over or understate true GDP if there is a change in market conditions for some subset of production that does not have another co-linear variable to adjust after the fact.
How does price allocate goods and services?
Price allocates goods and service by making sure that goods and/or services get to people that can afford and want them. High dollar items are sold where people actually would buy them.
What is a hidden production function?
In the field of economics, a production function is a calculation that explains the relationship between what it costs to produce goods and the actual quantity of goods you were able to produce. An example of a "hidden" production function would be money transfers at banks.
When the supply of goods decreases what kind of effect does it have on demand?
It doesn't have a direct effect on demand... if suddenly there were less toothpaste at the grocery store, the demand would remain the same. If the supply gets too low to meet the demand, the price will go up, and if the price goes up, that might have an effect on demand... some people will use other options besides toothpaste.
