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If demand for a product is high and supply is low the cost will increase. As the demand goes down or supply goes up, the cost will also go down. An example would be the latest video game. When it is first offered and everyone wants it the price is high. When something better comes along or everyone that wants the game has it, the price goes way down.
Wiki User
∙ 13y ago
Wiki User
∙ 16y agoAs demand for a certain product increases, consumers are willing to pay more for said item.
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What is a basic principle of the law of demand?
A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.
Which basic principle is also known as constitutionalism or rule of law?
Limited Government
How does law of demand affect the law of quantity?
It's a pretty basic concept learned in school. As more people demand a product, the availability of the product decreases. Therefore, causing the price of the product to increase with the demand.
Should rug sellers' increase the price of rugs due to the high demand?
If a product is in high demand, the chances are good that the seller of that product is going to increase the price. It is a basic principle of economics.
What is derivation of law of demand?
Law of demand is the higher the price the lower of goods demand for
What is a basic principle of the law of demand?
A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.
What is the basic economic principle that decides how high wages will be?
Supply and demand is the economic principle that decides how high wages will be
Nicolaus Steno proposed the most basic principle of relative dating known as the law of?
Nicolas Steno proposed the most basic principle of relative dating, known as the law of superposition:
What is a basic truth or law?
it is called a principle not the principal for your school though
What is the basic economic that decides how high wages will be?
Supply and demand is the economic principle that decides how high wages will be
Which basic principle is also known as constitutionalism or rule of law?
Limited Government
Is the Law of Conservation of Matter a basic principle in studying chemical reactions?
yes
Is The Law of Conservation of Matter is a basic principle in studying chemical reactions?
yes
Nicolaus steno proposed the most basic principle of relative dating the law of?
Nicolaus Steno proposed the most basic principle of relative dating, the law of superposition. Nicolas Steno was a scientist, as well as a Catholic bishop.
Nicolaus steno proposed the most basic principle of relative dating I'd the law of?
Nicolaus Steno proposed the most basic principle of relative dating, the law of superposition. Nicolas Steno was a scientist, as well as a Catholic bishop.
What principle holds that the powers of government should be limited and embodied in a basic law?
Constitutionalism
What is the principle of demand?
The law of demand states that all other things being equal, as the price of a commodity falls quantity demanded increases and vice versa.
