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How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
How does the price affect the supply of commodity?
Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.
What would happen to the supply The price of the commodity decreases?
If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.
What is the basic determinant of price of a commodity?
its demand , supply
What factor has the grestest influence on elasticity and inelasticity of supply?
price of the commodity
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
How does the price affect the supply of commodity?
Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.
What would happen to the supply The price of the commodity decreases?
If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.
What is the basic determinant of price of a commodity?
its demand , supply
The supply curve shows the relationship between?
Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.
Effects of supply and demand?
supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
Why is the slope of supply an unsatisfactory measure of the responsiveness in the quantity supplied of a commodity to a change in its price?
why is the slope of supply an unsatifactory measure of the responsiveness in quantity supplied of a commodity to a change in its price
What is the difference between supply and demand?
Demand refers to the quantity of a commodity which a consumer is willing to buy at a given price in a given period of time.Supply is quantity of a commodity that a seller or producer is willing to sell at a given price in a given period of time.Demand and price of a commodity have inverse relationship i.e. when price of a commodity increases it1s demand decreases and vice-versa; whereas the opposite is the case for supply i.e. price of a commodity is directly related to supply, the quantity supplied of a commodity rises with the rise in its price and vice-versa.
What is the price elasticity of supply for a laptop?
The elasticity of supply establishes a quantitative relationship between the supply of a commodity and it’s price. Hence, we can express the numeral change in supply with the change in the price of a commodity using the concept of elasticity. Note that elasticity can also be calculated with respect to the other determinants of supply. However, the major factor controlling the supply of a commodity is its price. Therefore, we generally talk about the price elasticity of supply. The price elasticity of supply is the ratio of the percentage change in the price to the percentage change in quantity supplied of a commodity. Es= [(Δq/q)×100] ÷ [(Δp/p)×100] = (Δq/q) ÷ (Δp/p) Δq= The change in quantity supplied q= The quantity supplied Δp= The change in price p= The price
What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?
Equilibrium price increases
