0
go up
Wiki User
∙ 13y ago
Wiki User
∙ 14y agoRise
Add your answer:
Earn +20 pts
What cause a price to increase?
Prices generally are the result of the combined effect of supply and demand. Scarcity causes prices to rise, since there is more competition to obtain scarce items, and demand causes prices to rise, since people will be willing to pay more for something they strongly want.
Why can the law of demand apply only in a free market economy?
demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.
What is expected demand?
Answer Scarcity causes demand and demand establishes a market, ultimately the sales increase. I think that 'increase of sales' is the expected demand.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
What is demand-pull inflation?
when prices of goods increase due to demand is called demand pull inflation
What cause a price to increase?
Prices generally are the result of the combined effect of supply and demand. Scarcity causes prices to rise, since there is more competition to obtain scarce items, and demand causes prices to rise, since people will be willing to pay more for something they strongly want.
Why can the law of demand apply only in a free market economy?
demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.
When will gas prices increase?
Gas prices increase when the demand increases compared to the supply, or when the cost of oil increases (due to demand, or if raised arbitrarily by the producers).
When demand exceeds supply are there any instances where prices wouldn't be raised?
When demand exceeds supply, prices will usually increase. However, prices may not increase if the sellers are non-profit organizations.
What is expected demand?
Answer Scarcity causes demand and demand establishes a market, ultimately the sales increase. I think that 'increase of sales' is the expected demand.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
What is demand-pull inflation?
when prices of goods increase due to demand is called demand pull inflation
What causes a shift in the supply curve?
the factors that cause the demand curve for bonds to shift are: increase/decrease in inflation rate increase/decrease of common stock increase/decrease of stock prices useful table :
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
Using the demand and supply analysis try to describe the recent increase in wheat prices worldwide?
demand and supply analysis try to describe the recent increase in wheat prices worldwide
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.
What is change in increase in demand?
Expectations of price change a news report predicting higher prices in in the future can increase the current demand as customers increase the quantity
