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Well, say a company has a whole bunch of a certain type of product. They have plenty of "supply." But if they don't have that many customers to buy that product, then they don't have a lot of "demand." Therefore, in order for them to sell the product, they need to make it cheaper to get rid of it. And it works opposite too. If they have little of the "supply," and lots of "demand," they will increase the price, so they can make a better profit.
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∙ 11y ago
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What is it called when price increases and supply decreases?
That is commonly referred to as the law of supply and demand.
Microeconomic factors affecting profit making firms?
i dont know what does profit affect microeconomics
How does productivity affect supply?
no
What is the price effect according to the law of supply?
The law of supply says; The supply will be increase due to increase in price and vice versa. The reason is that the seller will maximize his profit.
How does unreliable supply of raw materials inputs power finance and labor affects entrepreneurs?
unreliable supply of raw materials is one of the challenges facing entreprenuers in nigeria,in the sense that nigeria as a whole do not have stable supply of lights this tends to affect the business of small managers and depends on the nature of their jobs they begin to loss profit and eventually abandone the job.
Does ERISA affect profit sharing?
No.
What is it called when price increases and supply decreases?
That is commonly referred to as the law of supply and demand.
Microeconomic factors affecting profit making firms?
i dont know what does profit affect microeconomics
How does productivity affect supply?
no
What is the supply chain profit formula?
Supply chains are vital to the success of any business. The supply chain profit formula is a method that helps businesses to take advantage of their supply chain. This formula can be used in many different scenarios, such as a company’s financial planning and budgeting, to help the company make better decisions.
Are drawings an apportionment of profit?
Drawings are reduction of capital as it is owner withdrawal of cash from business and it do not affect profit.
How does subsidy affect supply?
It decreases cost of production and increases supply.
When a firm makes a profit by producing enough good to meet demand without having leftover supply at what point is it?
When a firm makes a profit by producing enough goods to meet demand without having leftover supply the point of profit is where marginal revenue equals marginal cost.
Why do firms use cost price pricing for supply contracts?
They are guaranteed a profit.
How does unreliable supply of raw materials inputs power finance and labor affects entrepreneurs?
unreliable supply of raw materials is one of the challenges facing entreprenuers in nigeria,in the sense that nigeria as a whole do not have stable supply of lights this tends to affect the business of small managers and depends on the nature of their jobs they begin to loss profit and eventually abandone the job.
What is the price effect according to the law of supply?
The law of supply says; The supply will be increase due to increase in price and vice versa. The reason is that the seller will maximize his profit.
How does the cost of production affect supplies?
Supply is the quantity of a good or service that a producer is willing and able to supply onto the market at a given price in a given time period.Cost business aim to maximise profit and reduce cost.Therefore an increase in production cost will result in a shift along the supply curve because the firm might not be able to supply as much at the same price. Resulting in a decrease in quantity supplied
