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What factors contribute to the presence of excess supply and excess demand in the market?
Excess supply in a market occurs when the quantity of a good or service supplied exceeds the quantity demanded at a given price. This can happen due to factors such as overproduction, changes in consumer preferences, or a decrease in demand. On the other hand, excess demand occurs when the quantity demanded exceeds the quantity supplied at a given price, which can be caused by factors such as shortages, sudden increases in demand, or price ceilings.
What will happen to product when demand is low?
When demand for a product is low, businesses may experience excess inventory, leading to increased storage costs and potential waste. To stimulate sales, companies might reduce prices or offer promotions, which can impact profit margins. Additionally, prolonged low demand may prompt businesses to reevaluate their product offerings, potentially leading to discontinuation or rebranding efforts. Overall, low demand can force companies to adapt their strategies to align with market conditions.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
What happen if price floor is above equilibrium price?
In a competitive market, it will produce an excess of supply (for the floor price, supply is bigger than demand)
What is most likely to happen to the price of a product if demand and supply increase at the same rate?
prices stay stable. studddy islannd ! :)
What happen when the demand for a product?
When demand decreases, supply increases.
What factors contribute to the presence of excess supply and excess demand in the market?
Excess supply in a market occurs when the quantity of a good or service supplied exceeds the quantity demanded at a given price. This can happen due to factors such as overproduction, changes in consumer preferences, or a decrease in demand. On the other hand, excess demand occurs when the quantity demanded exceeds the quantity supplied at a given price, which can be caused by factors such as shortages, sudden increases in demand, or price ceilings.
What will happen when the demand for a product increases according to Adam Smith?
Supply increases.
According to Adam smith what happen when the demand for a product decreases?
Supply increases.
What will happen to product when demand is low?
When demand for a product is low, businesses may experience excess inventory, leading to increased storage costs and potential waste. To stimulate sales, companies might reduce prices or offer promotions, which can impact profit margins. Additionally, prolonged low demand may prompt businesses to reevaluate their product offerings, potentially leading to discontinuation or rebranding efforts. Overall, low demand can force companies to adapt their strategies to align with market conditions.
What will happen when products are in excess?
That will tend to make the price drop. For more details, do some reading on "supply and demand".
When does customer service happen?
when customers come back to get more product or service in stead of leaving or complaining.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
What happen if price floor is above equilibrium price?
In a competitive market, it will produce an excess of supply (for the floor price, supply is bigger than demand)
What is most likely to happen to the price of a product if demand and supply increase at the same rate?
prices stay stable. studddy islannd ! :)
What is most likely to happen to the prices of a product if demand and supply increase at the same rate?
prices stay stable. studddy islannd ! :)
What will happen if there is an increase in demand for a product who's supply is perfectly elastic?
The quantity of the the products bought tends to fluxuate a lot. The prices tend to stay somewhat stable. It is opposite for inelastic demand,
