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Change in demand and supply
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What detemines the price and the quantity produced of goods?
Supply determines the price and quantity of produced goods.
What effects supply and demand?
Fluctuations in the price of goods. The affect of demand on price is directly proportional and supply's affect on price is indirectly proportional.
Why the price of agricultural goods tends to fluctuate more than the price of manufactured goods?
Because the supply is less certain.
What do you mean by inflation and deflation as a store of money?
by storing the money it means you are saving your money which means your consumption would be less thus in such event demand would be less and consequently the supply will supply the goods in low price to sell his goods .thus such situation would create deflation and when people would be attract to buy the goods at low price . suddenly when the demand would be more than supply the producer would sell the goods at high price . such a situation may inflation . that s why to overcome such situations the RBI has to come to come forward to stabilized the economy by doing change in the interest rate regarding loan
How does supplies affect the price of a product?
A higher price will cause an increase in supply, assuming that all other factors remain constant. Likewise, a decrease in price will cause a decrease of supply and an increase in demand.
The market supply curve is?
The market supply curve shows the amount of goods/services produced at any given price. There is a direct relationship between output and price. That is, if the price of goods and services is high, then sellers will produce a large number of goods and services. Conversely, if the price of goods/services is low, then output will also be low.
What are the advantages disadvantages of the price mechanism?
price mechanism is hte demand and supply of goods and services
What is the difference between elastic and inelastic?
Elastic goods usually have many substitutes, so changes in price will decrease demand. Inelastic goods, on the other hand, have very few substitutes, so demand isn't generally affected by price change.
When does excess supply occur?
Excess supply occurs when, at a given time, the equilibrium price of the market is less than the price that the goods are supplied at.
What determines the price of goods in a free enterprise system?
Supply and demand
What equilibrium price and equilibrium quantity?
equilibrium price and equilibrium quantity?: equilibrium price: When the price is above the equilibrium point there is a surplus of supply The market price at which the supply of an item equals the quantity demanded Price at which the quantity of goods producers wish to supply matches the quantity demanders want to purchase sa madaling salita supply=demand=price equilibrium quantity: Amount of goods or services sold at the equilibrium price The quantity demanded or supplied at the equilibrium price. supply=demand ayos?
How does the law of supply differentiate between normal goods and inferior goods?
The law of supply states that as the price of a good increases, the quantity supplied by producers also increases. Normal goods are products for which the quantity supplied increases when the price goes up, while inferior goods are products for which the quantity supplied decreases when the price goes up.
