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The economic condition of the area is a condition that can change the balance between supply and demand.
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∙ 9y ago
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What happens when a demand for a good increases when supply decreases?
Down here would be the possible scenarios and its effects If demand rises and supply rises (by the same factor): the prices do not change while the quantity is increased If demand falls and supply falls (by the same factor): the prices do not change while the quantity is decreased If demand falls and the supply rises (by the same factor) the prices would go down while quantity would not change If demand rises and the supply falls (by the same factor) The prices would go up while the quantity would not change.
How do you Explain the difference between change in supply and change in quantity supplied?
A change in supply means that the supply curve has shifted. With a stable demand, this will result in a change in the quantity supplied but also a change in price. A change in only quantity supplied without a change in supply would require a horizontal supply curve. Alternatively a change in quantity supplied and price may occur if there is a shift of the demand curve.
Illustrate what happens supply and demand equilibrium if there is both a decrease in supply and no change in demand and what factors could generate this scenario?
A decrease in supply with no change in demand would result in higher prices, as well as a possibility of extra-legal sourcing of the product. An example of this occurred during Prohibition in the United States with alcoholic products.
What would happen to supply if demand when up?
supply will increase.
What is perfect elastic of demand?
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
What causes stock prices to fluctuate asked by Shaw capital management?
Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
What is the concept of economy?
The concept of Economy is supply equals demand. Without demand there would be no supply which helps make up the economy.
Which will not cause the supply curve to shift?
A change in price level would cause movement along the demand curve, but would not cause the curve itself to shift.
When would a forest be sustainable?
When supply exceeds demand
How would a reduction in production cost look like on a supply-demand diagram?
Additional details to the question: What would be the result? increase in supply? decrease in demand? etc...
If people decided to have more children doest it affect to demand and supply?
If significant numbers of people decided to have more children, it may affect supply and demand. It would lead to more demand and less supply.
How does supply and demand affect consumers?
Supply and demand are vital to consumers. If a product is in high demand the supply has to go up which can increase prices because of the demand. Prices end up going up because more has to be shipped and it would have to get to the location of demand in a certain time.
