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According to Adam Smith what will happen when the demand of a good increases?
Wiki User
∙ 10y ago
The price decreases.
Immanuel Cremin
Wiki User
∙ 10y agoAccording to Adam Smith, as demand for a product increases, so does the price. As example, if the demand for crude oil rises because an oil producer limits its production, the price of crude oil will tend to rise.
Prices of products can be reduced if production costs fall. Thus the early price of a Model T Ford decreased due to assembly line production and because the car could be produced for less, the demand for it decreases. There are additional examples of this as well.
Wiki User
∙ 14y agoThe price decreases
The supply decreases.
Wiki User
∙ 9y agoThe price increases
Wiki User
∙ 14y agoThe price increases.
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According to Adam Smith what happens when demand for a good increases?
The supply decreases.
What will happen when the supply of a product increases According to Adam Smith?
the price of the product will decrease
What is general law of demand?
The general law of demand is that as demand increases, so will prices. This is half of the law of supply and demand. As supply increases, prices fall. So price depends upon a balance between supply and demand. This was originally pointed out by Adam Smith, in his book "The Wealth Of Nations".
According to Adam Smith what happens when the supply of a product increases?
The price decreases.
According to Adam Smith what happens when the supply of a good decreases?
The price increases-
According to Adam smith what happen when the demand for a product decreases?
Supply increases.
What will happen when the demand for a product increases according to Adam Smith?
Supply increases.
According to Adam Smith what happens when demand for a good increases?
The supply decreases.
According to Adam smith What happens when demand for a product decreases?
Supply increases.
What will happen when the supply of a product increases According to Adam Smith?
the price of the product will decrease
What is general law of demand?
The general law of demand is that as demand increases, so will prices. This is half of the law of supply and demand. As supply increases, prices fall. So price depends upon a balance between supply and demand. This was originally pointed out by Adam Smith, in his book "The Wealth Of Nations".
According to Adam Smith what happens when the supply of a product increases?
The price decreases.
What happens when the supply of product decreases according to Adam smith?
The price increases
According to Adam smith what happened when the supply of product increases?
The price decreases.
According to Adam Smith what happens when the supply of a good decreases?
The price increases-
What are two factors that regulate a marketplace according to Adam smith?
Supply and demand are the 2 factors that regulate a marketplace.
According to Adam smith how should wages and prices be regulated?
Adam Smith believed that wages and prices should be regulated by the forces of supply and demand in a free market economy. He argued that competition among employers and workers would naturally adjust wages and prices to levels that reflect the true value of goods and services. This concept is known as the invisible hand of the market.
