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Prices generally are the result of the combined effect of supply and demand. Scarcity causes prices to rise, since there is more competition to obtain scarce items, and demand causes prices to rise, since people will be willing to pay more for something they strongly want.
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An increase in demand will cause the equilibrium price and quantity to rise?
An increase in demand will cause the equilibrium price to fall and equilibrium quantity to rise.
Will an increase in supply without any changes in demand will cause the price to rise?
No, an increase in supply without a change in demand will cause the price to fall.
Which answer would cause an ''increase in quantity supply'' for computers?
Increase in the price of computer.
When An excess demand for a product will cause the price to?
Increase
An increase in product price will cause?
the product supply increase. The quntity deman decrease
An increase in demand will cause the equilibrium price and quantity to rise?
An increase in demand will cause the equilibrium price to fall and equilibrium quantity to rise.
Will an increase in supply without any changes in demand will cause the price to rise?
No, an increase in supply without a change in demand will cause the price to fall.
What events can cause the equilibrium price of ice cream to increase?
what five specific events that can be expected to cause the equilibrium price of ice cream to increase
Which answer would cause an ''increase in quantity supply'' for computers?
Increase in the price of computer.
When An excess demand for a product will cause the price to?
Increase
An increase in product price will cause?
the product supply increase. The quntity deman decrease
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.
Will an increase in supply cause an increase in consumer suplus?
yes because increase in supply will cause decrease in price so the purchasing power of consumer will increase as a result of surplus
What cause can lead to a raise in prices?
Price increases can be caused by a variety of factors. One is the cost of raw materials can increase. An increase in the price of gas can also cause goods to increase, because most goods need to be transported.
What is the difference between increase in demand and an increase in quantity demand?
Increase in demand::It imply rightwaed shift of demand curve.Therefore change in factors other than price.1. increase in taste increase in demand curve2. increase in popoulation increase in demand curve3. increase in income increase demand if normal good4. fall in income increase demand if an inferior good5. increase in price of substitute (pepsi) increase demand for good(coke)6. fall in price of complement (beer) increase demand for good7. if we expect the price of the product to increase in the future , our demand today will increase.Increse in quantity demanded::Movement up the demand curve.Therefore change in price-------- increase in price cause a decrese in quantity demanded,decrese in price cause an increase in quantity demanded .
What would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
A decrease in supply will cause an?
increase in equilibrium price and a decrease in equilibrium quantity, which leads to a shortage at the original price.
