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There are many different ways to go with this question but two main things could happen. 1. It will create a shortage, increasing demand and that will increase the price of whatever is being supplied. 2. A substitution will be created to meet the demand left by the other product. OR both will happen, a substitution will be made to meet the demand by people not able to afford the original.
What else can I help you with?
What is elastic supply?
the situation that exists when quantity supplied changes greatly in response to a change of price.
Definition of determinants of supply?
Assuming the market is perfectly competitive and there are no government imposed restriction, the quantity supplied will equal the quantity demanded, meaning the quantity demanded by buyers equals the quantity supplied by sellers.
What happens to a market in equilibrium when there is an increase in supply?
Quantity supplied will exceed quantity demanded, so the price will drop.
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
What happens if demand and supply increase?
the price and value of the item will decrease.
What happens to the equilibrium price and quantity when demand rises less than supply rises?
When price and quantity demanded rises less than supply rises then shortage of goods create.
If many people want to buy a product but not enough of product exists what is that called?
That is called a shortage of the product. A shortage happens whenever the demand (number of people wanting a product) is greater than the supply (quantity of available product).
What happens if demand shifts to the right and supply remains constant?
price will decrease, quantity will decrease.
When quantity supplied and quantity demanded increase due to improved technology what happens?
An increase in technology will cause a shift in supply curve due to lowered production costs. This increased supply will put downward pressure on prices, driving up quantity demanded.
What happens when theres an increase in demand and a decress in supply?
An increase in price occures, and quantity will remain unchanged.
What is an equilibrium quantity?
It is the amount bought when demand matches supply. When this happens, the items are sold at the equilibrium price.
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
