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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
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∙ 12y ago
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What is the relationship between the law of supply?
As demand increases, supply increases, and as demand decreases, supply decreases. (Assuming Ceteris Paribus (All other factors are held constant))
When will happen if the sellers in the market increase?
As the Number of Sellers Increases, the Supply of the commodity Increases. As Supply Increases, and demand remains constant, Prices Decrease.
If supply increases and demand is constant price will what?
In the short run nothing happens to price
What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
What is the relationship between the law of supply?
As demand increases, supply increases, and as demand decreases, supply decreases. (Assuming Ceteris Paribus (All other factors are held constant))
When will happen if the sellers in the market increase?
As the Number of Sellers Increases, the Supply of the commodity Increases. As Supply Increases, and demand remains constant, Prices Decrease.
If supply increases and demand is constant price will what?
In the short run nothing happens to price
What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
What 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.
What is the difference between demand and quantity demanded?
demand = how much people want it quantity (supply) = how much you have/can sell When the demand drops, the supply increases, and when the supply increases, the demand drops, but it will turn around again, and when the supply is low, the demand increases, and when the demand increases, and the supply gets lower.
If demand decreases and supply is constant what happens to the equilibrium price?
If demand decreases and supply is constant, the price will increase.
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
Demand rises and supply is constant?
No. If demand rises, then supply falls. Transveresly, if demand falls, then supply rises.
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.
What happens when supply increases?
when the supply of a commodity increases but demand remains constant then price of the commodity falls which is called deflation with the result unemployment rises.on the other hand if supply rises and if demand also rises with same rate then this would have positive effect on the economy as the employment rises with out inflation.
