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What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
What is in a free enterprise economy supply and demand affect the of a product?
In a free enterprise system, when supply is low and demand is high, prices are higher, but when supply is high and and demand is low, prices are lower.
What method does 'OPEC' use to raise the price of oil?
OPEC uses supply and demand to determine prices. If they want to raise the price, they slow down production. The lower supply will equal higher prices.
How do subsides generally affect the supply curve why?
Subsidies generally shift the supply curve to the right by lowering production costs for producers. This incentivizes them to increase output, as they can sell more at lower prices while maintaining profitability. As a result, the overall market supply increases, leading to lower equilibrium prices for consumers.
Explain the process of supply and demand and how prices rise and fall?
Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
What is in a free enterprise economy supply and demand affect the of a product?
In a free enterprise system, when supply is low and demand is high, prices are higher, but when supply is high and and demand is low, prices are lower.
What method does 'OPEC' use to raise the price of oil?
OPEC uses supply and demand to determine prices. If they want to raise the price, they slow down production. The lower supply will equal higher prices.
How do subsides generally affect the supply curve why?
Subsidies generally shift the supply curve to the right by lowering production costs for producers. This incentivizes them to increase output, as they can sell more at lower prices while maintaining profitability. As a result, the overall market supply increases, leading to lower equilibrium prices for consumers.
Contract and compare supply and demand?
supply ,higher prices, producers are willing to offer more products for sale than at lower prices.and the can increases the prices . and demand is was higher price for the companies.for the constomers
A weaker demand together with a stronger supply would necessarily result in?
lower prices for the goods or services in question. With less demand and more supply available, sellers would need to lower prices to attract buyers and move their inventory. This could lead to a surplus of goods or services in the market.
When the supply of a commodity exceeds the demand prices generally rise?
When the supply of a commodity exceeds demand, prices typically fall, not rise. This occurs because sellers may lower prices to attract buyers and reduce excess inventory. Conversely, when demand exceeds supply, prices rise as consumers compete for the limited availability of the commodity. Thus, the relationship between supply and demand is fundamental in determining market prices.
Which is not an element of deflation?
the supply of goods and services leads to lower prices
The law of supply states that what of a product will be offered at a high price and what of a producy will be offered at a low price?
The law of supply states that a greater quantity of a product will be offered for sale at higher prices, as producers are more willing to supply more when they can receive higher revenue. Conversely, a lower quantity of a product will be offered at lower prices, as producers may not find it profitable to supply as much at reduced prices. This relationship reflects the direct correlation between price and quantity supplied.
How do changes in demand and supply bring about changes in market-clearing prices?
demand and supply are continually changing, causing some market-clearing prices to rise and some to fall; however these higher and lower prices cause some businesses in our economy to expand and others to contract.
