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The price will increase , Demand will decrease and Supply will increase until reach the equilibrium point
if, at a current price there is a shortage of a good
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.
Consumers bid up the price.
below equilibrium price and causes a shortage
The price will increase , Demand will decrease and Supply will increase until reach the equilibrium point
if, at a current price there is a shortage of a good
if, at a current price there is a shortage of a good
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.
Consumers bid up the price.
below equilibrium price and causes a shortage
shortage of supply
A shortage of supply
Gas went up in price because of the shortage.
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
fixed price with economic price adjustments
It must be less than the equilibrium price.