0
IS THE Increases in price are always caused by an increase in demand?
Wiki User
∙ 13y ago
No. Inflationary pressures, increased costs in labor or materials cause prices to rise. Also stagnant demand and diminishing supply of a finite product will cause prices to go up. Finally, in a pure capitalist scenario, "whatever the market will bare" could cause the price to increase as well.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
If income increases demand is likely to?
Increase
What happens if demand and supply increase?
the price and value of the item will decrease.
What is demand push inflation?
Demand-pull is caused by an increase in aggregate demand.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
If income increases demand is likely to?
Increase
What happens if demand and supply increase?
the price and value of the item will decrease.
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).
What happens to the real rate of interest when the demand for capital increases because technology innovations have caused the aggregate investment opportunity set to increase?
Anytime the demand for capital increases, interest rates go up. Supply and demand. The price of money is measured in interest rates.
When the population increases you can expect overall demand to?
Increase
What is demand push inflation?
Demand-pull is caused by an increase in aggregate demand.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
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
What will cause the capital stock when it increases?
Increases in the stock of capital will cause which of the following?The demand of labor increases.The demand of labor decreases.Selected answer No change in the demand of labor.First increase then decrease the demand of labor
