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If demand decreases and supply is constant what happens to the equilibrium price?
If demand decreases and supply is constant, the price will increase.
If supply shifts to the left and demand remains constant?
Price will increase, quantity will decrease
How does supplies affect the price of a product?
A higher price will cause an increase in supply, assuming that all other factors remain constant. Likewise, a decrease in price will cause a decrease of supply and an increase in demand.
How does the equilibrium price change when both supply and demand shift to the right?
When both supply and demand shift to the right, the equilibrium price will increase if the increase in demand is greater than the increase in supply. Conversely, the equilibrium price will decrease if the increase in supply is greater than the increase in demand.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
Explain the law of supply in your own words?
Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc
Will an increase in supply without any changes in demand will cause the price to rise?
No, an increase in supply without a change in demand will cause the price to fall.
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 .
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
When the supply is less than demand there is a what?
If the supply is less than the demand, there will be a shortage and price increase.
