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What happens to prices when there is a shortage in the market?
The price goes up if the demand is high
How does the price system in a free market economy react to shortage of commodity?
Higher prices
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
How does a price ceiling undermine the rationing function of market-determined prices?
A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.
What happens when demand is greater than supply?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
When do shortage occurs?
Shortages occur when producers will not or can't offer goods or services at current prices.
When do shortage occur?
Shortages occur when producers will not or can't offer goods or services at current prices.
What is a main factor driving prices for good and services upward?
The increase of demand and the shortage of supplies or service.
Why prices of gold increase or decrease in the market?
Because pickles
What can happen to prices in a competitive market when demand increases as supply remains the same?
increase in prices
What is meant with stock market prices in finances?
Stock market prices are constantly changing. To find out more information about current stock market prices I suggest you go to en.wikipedia.org/wiki/Financial market where you will find the information you are looking for.
How did the market determine the price and the quantities supplied and demanded?
it depends upon the demand of the people.... if demand of a particular commodity increases then the supply will automatically increase and in case of shortage, the suppliers would raise the prices of that specific good.
