When the demand of a product increases, so will the supply. Manufacturers will produce more of the product in order to get more money.
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
If demand decreases and supply is constant, the price will increase.
Someone makes money
The price goes down.
the price and value of the item will decrease.
The price declines until demand increases.
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 .
An increase in price occures, and quantity will remain unchanged.
Prices increase and you have inflation.
Equilibrium price increases
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.