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If demand and supply is limited but the demand is high how would the price be affected?
Wiki User
∙ 13y ago
yes, because supply is limited and the demand is high then pretty much the price will be affected. since the shortage of supply, and high demand, then price will be high price and very expensive
Wiki User
∙ 13y ago
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How does supply and demand affect pricing?
If supply is greater then the demand then the price is lower but if the demand is higher then the supply then the price is higher due to rarity. :)
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
How is the price of gas affected by supply and demand?
If the price of gas keeps going up like it has been these past few months, that means one thing: we are running out of gas and demand will rise.
How may high demand and limited supply of products cause inflation?
because when the demand increase the price increase to.and customers have no choice since they used to consume the same product for too long.
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.
Why is there an inverse relationship between demand and price?
If something is in high demand but there is a limited supply of it then the price goes up. Kinda of like the price of gasoline. There isn't a limited supply and alot alot of people need it for their cars and other things etc so it drives the price. If there isn't a high demand for it then the price is generally reasonable. They are inversely related. Directly related is supply and demand.
Who determines a company's share price?
Actually nobody. The price of a company's share is determined by the demand and supply theory and not by any individual. During an IPO, the price is determined by the lead underwriters to the IPO issue. But once the stock gets listed, the demand and supply drives the price of the stock. If a stock has heavy demand and limited supply, the price of the stock goes up. Similarly if a stock has little demand and heavy supply, the price goes down.
What is the rule of price in economics?
Price is tied to supply in demand. If there is a short supply and big demand, price goes up. If there is a short supply and low demand, price will remain steady. If supply is high and demand small, price will go down.
How does supply and demand affect pricing?
If supply is greater then the demand then the price is lower but if the demand is higher then the supply then the price is higher due to rarity. :)
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
How is the price of gas affected by supply and demand?
If the price of gas keeps going up like it has been these past few months, that means one thing: we are running out of gas and demand will rise.
How may high demand and limited supply of products cause inflation?
because when the demand increase the price increase to.and customers have no choice since they used to consume the same product for too long.
Does coin value in liberty nickels affected by gold or silver prices?
In my opinion, in general no. Supply and demand drive the price.
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.
What is supply relationships?
I take it you mean what is the relationship of supply and demand. As the supply goes up the price will come down. As the demand goes up the price will go up. If the supply and demand are in balance the price will stay the same.
What is equilibirium price?
When demand price = supply price
Relationship between demand and supply?
1:inverse relationship between supply and demand 2:supply depends upon the demand of a commodity, that it might be positive or negative. 3:supply always depends upon demand but demand never depends to supply. 4:a supply never affects the demand of a commodity but demand always affect to its supply. 5:demand is the initial stage but supply is the stage after demand. 6:supply have a positive relations to price whereas demand has a negative relations with price. 7:supply and price has a direct relations or positive relation. 8:law of supply relates to the price and supply of a particular commodity in a particular time period. 9:price has a connections with demand and supply that it affects both supply in a positive way and demand in a negative way and if price changes then both demand and supply will change. 10:demand curve shows the changes positions of demand in a different price level of a particular commodity where demand schedule also shows the changes positions of demand in a different price level of a particular commodity, hence both have a common objectives to depict the same result in a different way.
