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what are the effect of an increasing in the price of gas on the quantity supply and price of food?
Gas (petrol or diesel) is the main substance to fuel transport vehicles including air freight, rail and sea freight as well as road. If the cost of fuel increases then eventually the cost of the products carried will rise pro rata. If fuel is used to make the food, farm the food or to maintain the foods storage capability then the cost will increase the product cost.
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An increase in supply will have what effect on equilibrium price and quantity?
Increase in supply in the face of steady demand will result in lower price.
If supply shifts in (leftward) and simultaneously demand shifts out (rightward) what can we expect to happen to the equilibrium price and quantity?
When supply shifts leftward (decreasing supply) and demand shifts rightward (increasing demand), the equilibrium price is likely to rise due to the increased competition for a limited quantity of goods. However, the effect on equilibrium quantity is uncertain; it may either increase or decrease depending on the magnitude of the shifts in supply and demand. If the increase in demand is greater than the decrease in supply, quantity will rise, but if the decrease in supply is greater, quantity will fall. Thus, while we can expect a higher equilibrium price, the change in quantity will depend on the relative shifts.
What equilibrium price and equilibrium quantity?
equilibrium price and equilibrium quantity?: equilibrium price: When the price is above the equilibrium point there is a surplus of supply The market price at which the supply of an item equals the quantity demanded Price at which the quantity of goods producers wish to supply matches the quantity demanders want to purchase sa madaling salita supply=demand=price equilibrium quantity: Amount of goods or services sold at the equilibrium price The quantity demanded or supplied at the equilibrium price. supply=demand ayos?
A decrease in demand will have what effect on equilibrium price and quantity?
There will be a decrease in price and quantity.
What detemines the price and the quantity produced of goods?
Supply determines the price and quantity of produced goods.
What impact will short supply of material have on budget preparation?
A short supply will usually have the effect of increasing price. This is due to basic laws of supply and demand. If the price of raw materials increases, then the forecasted profit will be in jeopardy.
What is the Importance of equilibrium price and quantity?
The importance of equilibrium price and quantity is that it creates a point where there is no pressure on the market to shift supply or demand. Suppliers supply exactly the quantity demanded.
When is the profit-maximizing quantity of output reached?
To maximise profits, the quantity of output reached (supply) must be lesser than the demand, increasing the value and consequently the price of a certain good or service.
How does the relationship between price and quantity impact supply in the market?
The relationship between price and quantity impacts supply in the market through the law of supply. As the price of a good or service increases, suppliers are more willing to produce and sell more of it, leading to an increase in supply. Conversely, if the price decreases, suppliers may reduce the quantity they are willing to supply. This direct relationship between price and quantity supplied helps determine the overall supply levels in the market.
How is quantity affected by price changes?
supply elasticity
What are example of product with perfectly elastic and perfectly inelastic supply?
Elasticity of supply describes how a product's quantity affects its price. Milk, for example, has an elastic supply - the quantity goes up and the price goes down. Or, as the quantity is limited, the price goes up. Inelastic supply implies that availability does not affect price, such as with airplane flight tickets.
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
