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Well it should go up, say a Xbox 360 costs £200 and there are 200 available and 200 orders prices should increase a little so it may cost £210 but if there is 200 orders but 150 360's the price will increase to the extent that who ever is willing to pay more will get one.
Conversely if there are 50 orders and 200 xboxes then the price should fall.
This is a simplification of course. There are other factors involved.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agointerpret what an increase in demand and an increase in supply mean.
Wiki User
∙ 12y agoWe cannot predict the market clearing price, but know that the equilibrium will increase.
Wiki User
∙ 15y agoThe price stays relatively the same.
Wiki User
∙ 13y agoUsually the price goes up.
Wiki User
∙ 12y agoTypically, prices will tend to rise.
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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 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 supply increase and demand decrease?
The price goes down.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
What happens if demand and supply increase?
the price and value of the item will decrease.
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 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 supply increase and demand decrease?
The price goes down.
What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?
Equilibrium price increases
What happens when theres an increase in demand and a decress in supply?
An increase in price occures, and quantity will remain unchanged.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
What happens if demand and supply increase?
the price and value of the item will decrease.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
What happens when supply is greater than demand?
The price declines until demand increases.
What happens when demand for a good increase but it's supply decrease?
The price for the good increases
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.
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
