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When the demand of a product is higher than the speed that a shop/supplier, the prices will increase. The shop is always going to want a profit, and if they can't make a big enough profit out of the few products (who's supply is running out) they will have no choice but to raise prices. If they didn't raise prices, all their goods would soon run out, giving them a lesser profit than if they raised the price.
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What happens when demand is greater than demand?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
What happens to prices when demand is greater than suply?
They rise. Supply & demand.
What happens when supply is greater than demand?
The price declines until demand increases.
What happen when demand and supply are not equal?
When demand is higher than supply prices are going up, at some level customers don't want to buy and sales are going down. When supply is higher than demand prices are going down, at some level demand is again higher than supply and prices are going up.
What happens to prices when the supply is greater than demand?
The price often come down as suppliers try to shift slow selling stock.
What happens when demand is greater than demand?
When demand is greater than supply a supply shortage or scarcity arises and prices increase.
What happens to prices when demand is greater than suply?
They rise. Supply & demand.
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 happens when supply is greater than demand?
The price declines until demand increases.
What happen when demand and supply are not equal?
When demand is higher than supply prices are going up, at some level customers don't want to buy and sales are going down. When supply is higher than demand prices are going down, at some level demand is again higher than supply and prices are going up.
What happens to prices when the supply is greater than demand?
The price often come down as suppliers try to shift slow selling stock.
When demand is greater than supply does prices decrease?
If there is no form of price control in place then yes it does.
What will interest rates do if the demand for money in the money market exceeds the supply?
If the demand for money is greater than the supply, interest rates will go up.Whenever the demand for anything is greater than the available supply, the price goes up.
How does the equilibrium price change when both supply and demand shift to the right?
When both supply and demand shift to the right, the equilibrium price will increase if the increase in demand is greater than the increase in supply. Conversely, the equilibrium price will decrease if the increase in supply is greater than the increase in demand.
Why do stocks go up or down in price?
Stock prices go up or down based on the Demand - Supply theory. Whenever the demand for a stock is more than its supply its prices go up Whenever the supply of a stuck is more than its demand its prices go down
What causes stock prices to fluctuate asked by Shaw capital management?
Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
What is it called when supply is greater than demand?
Depression
