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Supply and demand is what causes house prices to rise. If there are few houses for sale, but many people looking to buy a house, the price of those few houses will rise.

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11y ago

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An increase in demand causes prices to?

go up


What cause a price to increase?

Prices generally are the result of the combined effect of supply and demand. Scarcity causes prices to rise, since there is more competition to obtain scarce items, and demand causes prices to rise, since people will be willing to pay more for something they strongly want.


How does inflation affect prices?

It causes the general price of products to slowly rise over time.


How drought influence farming?

products as well. This causes a rise in prices for everyone as far as feeding their families.


What causes Price rise in a particular market?

Generally prices rise when the is increased demand for a product (oil/petrol for example) or when there is a restriction in the supply (eg houses).


Why do market prices go up?

Prices can rise for various reasons. However, they usually go up when demand increases, or if there is a condition that causes a scarcity of resources.


If there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation what happens to prices?

they rise


When prices rise what happens to income?

When prices rise, income buys less.


If there is an increase in the money supply that causes money to lose its purchasing power and prices to rise?

It loses purchasing power.


What is considered one cause inflation?

Producers raise prices to meet increased costs, which causes costs to consumers to rise.


What is considered one cause of inflation?

Producers raise prices to meet increased costs, which causes costs to consumers to rise.


Causes of rise and fall in demand?

it means the prices go up or down :) lol its my civics homework