0
Theory of supply and demand - as the price of an article decreases what happens?
Wiki User
∙ 13y ago
The theory says that the demand increases. this however is not necessarily true. in some instances the demand will also decrease when there is status involved. For example some people will not buy generic brands.
Wiki User
∙ 13y ago
Wiki User
∙ 15y agoThe quantity demands will usually rise
Add your answer:
Earn +20 pts
What happens when the demand for a product decreases?
When demand decreases, supply increases.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
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 happens to business as demand decreases?
expands and hires new employees
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
What happens when the demand for a product decreases?
When demand decreases, supply increases.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
When demand decreases and supply decreases what happens?
prices go higher
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 happens to business as demand decreases?
expands and hires new employees
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
What happens if the supply decreases and demand is constant?
Then you will sell out quickly. You better restock
According to Adam Smith what happens when demand for a good increases?
The supply decreases.
According to Adam smith What happens when demand for a product decreases?
Supply increases.
What happens to the equilibrium price when demand increases and supply decreases?
It goes up
Is demand needed in equilibrium?
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
What happens to the quantity demanded for credit if the cost of borrowing increases or decreases?
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
