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When demand exceeds supply are there any instances where prices wouldn't be raised?
Wiki User
∙ 9y ago
When demand exceeds supply, prices will usually increase. However, prices may not increase if the sellers are non-profit organizations.
Wiki User
∙ 9y ago
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If supply exceeds demand for a product what economic explanation occurs?
prices decrease
What will happen if everyone expects inflation to occur?
If people expect inflation, they are more inclined to spend than save money which will lose its value. A surge in demand will cause an an increase in prices (because demand exceeds supply) and voila! Inflation.
Is Supply and demand the same as supply exceeds demand?
Supply and demand is an economics tool used graphically to demonstrate the relative effects on market price generated by the quantity of supply and the quantity of demand. Supply exceeding demand generally is shown, again graphically, to lower market price. On the other hand, demand exceeding demand generally results in a higher market price. Verbally, the supposition can be stated, "as supply increases, given that demand remains static, price will fall. as demand increases, while supply remains static, prices will rise. as supply decreases, while demand remains static, prices will rise. as demand decreases, while supply remains static, prices will fall.
What is the responsible for inflation according to the demand-pull theory?
According demand-pull theory, what causes inflation is a strong demand and a lower supply. By having a greater demand, people pull prices up. Economists will often say that demand-pull inflation is a result of too many dollars chasing too few goods.
What kind of relationship does demand have with prices?
the relationship demand has with prices is that when the demand for a product is high the prices go high as well, like gas and food....
How is the future cost of a barrel of oil calculated?
The future cost of a barrel of oil is calculated by examining projections of how much oil is available as compared to how much oil is being used or is in demand. Prices spike when the demand for oil exceeds its availability, from all sources.
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
Explain the process of supply and demand and how prices rise and fall?
Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
How is today's gold prices increase or decrease?
as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.
How may changes in prices affect the demand for a good?
Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.
When the price of both substitute and compliment of a commodity risewhat will be the demand for that commodity?
There wouldn't be a great demand for the commodity as, lower ther the prices, more the demand of the commodity.Remember, Demand for a product increases when the prices of its complements decreaseANSWER: Supply and demand
