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I assume you mean micro-economic situations, hence not aggregate supply. Generally demand will increase as supply decreases, and vice versa, but how much depends on the elasticity of demand. This is because as supply decreases, price level decreases also, so more people will demand the good or service.
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∙ 14y ago
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If the price of resources increases what will happen to supply?
supply will decrease
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
If the fed increases the money supply what will happen to interest rates?
when money supply is increased, interest rates decrease
What will happen when Aggregate demand and aggregate supply decrease?
When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.
What will happen when the supply of a product increases According to Adam Smith?
the price of the product will decrease
If the price of resources increases what will happen to supply?
supply will decrease
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
If the fed increases the money supply what will happen to interest rates?
when money supply is increased, interest rates decrease
What will happen when Aggregate demand and aggregate supply decrease?
When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.
What will happen when the supply of a product increases According to Adam Smith?
the price of the product will decrease
Is this a change in supply or demand of oranges is it an increase or decrease what will happen to the price of oranges why is this a rip off?
There is often a change in supply and demand of oranges.
When will happen if the sellers in the market increase?
As the Number of Sellers Increases, the Supply of the commodity Increases. As Supply Increases, and demand remains constant, Prices Decrease.
If there is a decrease in supply what will happen to the total surplus?
If supply decreases the prices will go up and quantity will go down and surely total surplus will be reduced.
What would most likely happen to the price of a product if the supply of that product decreased?
Supply is inversely proportional to inflation, so the priceof the product will decrease
Is this a change in the supply or demand of swimsuits why is it an increase or decrease what will happen to the price of swimsuit why is this a rip off?
A change in the supply and demand of swimsuits often occurs.
What might happen to make a producer decrease his or her supply of a product.?
Because if the factor price is increased, the producer will have less resources to make their product and will have less products to supply
What are the basis of an increase or decrease in supply?
demand in supply is the basis of it's increase and decrease
