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When the demand of a product increases, so will the supply. Manufacturers will produce more of the product in order to get more money.
Nadia Heidenreich
Wiki User
∙ 14y agoNothing. The supply function is separate from the demand function. If supply goes up, equilibrium price goes down (along the demand curve) and equilibrium quantity goes up (also along the demand curve). It is incorrect to say that when supply goes up that demand increases, because the demand function does not change; quantity demanded (as dictated by equilibrium) will indeed rise, but this is not the same as an increase in demand.
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What happens when demand is greater than demand?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
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 when theres an increase in demand follwed by an increase in supply?
Someone makes money
What happens when supply increase and demand decrease?
The price goes down.
What happens if demand and supply increase?
the price and value of the item will decrease.
What happens when supply is greater than demand?
The price declines until demand increases.
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 theres an increase in demand and a decress in supply?
An increase in price occures, and quantity will remain unchanged.
What happens if theres more demand than supply?
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.
What happens if there is more supply than demand?
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.
What happens when the demand is more than supply?
Prices increase and you have inflation.
What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?
Equilibrium price increases
