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When supply exceeds demand, it is known as a surplus.Surpluses only occur among rational producers and consumers if a regulatory price floor is in effect (that is, the government mandates that the price of the good or service in question not go below a certain level). If no such regulation is in place, the price of the good or service will lower to the point where supply and demand are equal to one another.
If the price of the good is lowered, then demand will increase.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agoIf there is more demand than supply, the price tends to increase.
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When demands exceeds supply is called what?
supply or demand <3
If supply exceeds demand for a product what economic explation occurs?
demand decreases and price will decrease.
Is it true that In economics the price rise when demand exceeds supply?
Yes
Does rent increase if property supply exceeds demand?
When rental supply increases the rent decreases.
How do you solve when demand exceeds supply?
Make or stock more but sell higher until supply meets demand, usually selling at a fair market price will cause higher volumes of sales because more can afford it. Conversely, too much supply will cause you to sell for less until demand meets supply !
When demands exceeds supply is called what?
supply or demand <3
In which situation is a forest most likely to be sustainable?
When supply is greater than demand
When would a forest be sustainable?
When supply exceeds demand
When demand exceeds supply are there any instances where prices wouldn't be raised?
When demand exceeds supply, prices will usually increase. However, prices may not increase if the sellers are non-profit organizations.
If supply exceeds demand for a product what economic explation occurs?
demand decreases and price will decrease.
Is it true that In economics the price rise when demand exceeds supply?
Yes
What makes a forest sustainable?
Supply exceeds deman-APEX
Does rent increase if property supply exceeds demand?
When rental supply increases the rent decreases.
How do you solve when demand exceeds supply?
Make or stock more but sell higher until supply meets demand, usually selling at a fair market price will cause higher volumes of sales because more can afford it. Conversely, too much supply will cause you to sell for less until demand meets supply !
Which theory says that inflation occurs when the demand for goods exceeds the existing supply?
demand pull theory
If supply exceeds demand for a product what economic explanation occurs?
prices decrease
When aggregate demand exceeds aggregate supply which of these is MOST likely to result?
A budgetary surplus
