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An increase in supply will cause a decrease in demand. The value of what is being supplied would also drop.
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∙ 9y ago
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Give three examples that cause supply to increase?
Three examples that cause supply to increase are overproduction, inflation and lack of demand. Lack of demand for supply can create the supply to increase eventually.
Will an increase in supply cause an increase in consumer suplus?
yes because increase in supply will cause decrease in price so the purchasing power of consumer will increase as a result of surplus
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.
Which answer would cause an ''increase in quantity supply'' for computers?
Increase in the price of computer.
What is the ultimate impact on the money supply of an increase in the discount rate?
The increase in the discount rate will cause the money supply to reduce in growth
Give three examples that cause supply to increase?
Three examples that cause supply to increase are overproduction, inflation and lack of demand. Lack of demand for supply can create the supply to increase eventually.
Will an increase in supply cause an increase in consumer suplus?
yes because increase in supply will cause decrease in price so the purchasing power of consumer will increase as a result of surplus
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.
Which answer would cause an ''increase in quantity supply'' for computers?
Increase in the price of computer.
What is the ultimate impact on the money supply of an increase in the discount rate?
The increase in the discount rate will cause the money supply to reduce in growth
An increase in product price will cause?
the product supply increase. The quntity deman 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.
What do you understand by the concept of deflation and the cause of deflation?
an increase in which exceeds the supply
Which answer would cause an ''increase in supply'' for computers?
Decrease in computer resources cost.
Which factor might cause an increase in the supply of a product?
the introduction of new technology
Which answer would cause a ''decrease in supply'' for computers?
Producers expectation of a computer prince increase.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
