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The rise in the price of a product is going to cause:
1. consumer demand of product to decrease
2. producers supply decreases
3. equilibrium price is uncertain because both demand and supply are shifting
However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
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What is caused by a raise in the price of a product?
The raise in the price of a product causes an increase in competition.
True or false A price fixed below the equilibrium price of a product will cause a shortage of that product?
true
When An excess demand for a product will cause the price to?
Increase
An increase in product price will cause?
the product supply increase. The quntity deman decrease
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
What is caused by a raise in the price of a product?
The raise in the price of a product causes an increase in competition.
When businesses raise the price of a needed product or service after a natural disaster this is known as?
Price gouging
When businesses raise the price of a needed product or service after a natural disaster this is known as .?
price gouging
What does A raise in the price of a product causes?
The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
True or false A price fixed below the equilibrium price of a product will cause a shortage of that product?
true
When An excess demand for a product will cause the price to?
Increase
An increase in product price will cause?
the product supply increase. The quntity deman decrease
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
If a company raise its price for the holiday over the equilibrium pricethe demand will?
If a company chooses to raise prices during the holidays, they will sell less of that product. Some consumers reservation price will be lower than the new price so they will not buy the product. This is represented by a movement along the demand curve, NOT a shift of the demand curve.
Which event might cause people to buy more of a product?
A lowered price. A surplus might cause people to buy more of a product
In a perfect market when an individual producer tries to raise their price they will not be able to sell there product?
An individual producer will try to raise the price of a product when there is great demand for the product in relation to supply in order to gain a profit. Other producers in a perfectly competitive market will then lower their prices in order to attract more consumers to their product. This may still produce a profit if enough consumers buy greater quantities of the product to compensate for the low price. Overall this increases demand for the supply.
What cause the price to decrease?
1. The increase in quantity will cause the equilibrium price to decrease. 2. If the cost to produce a product decreases, the price will decrease. This may not be the case however; if the product is inelastic 3. When more supplier's enter the market place for that product, the competition will go up and prices will lower. 4. When one of the ingredients of a product is changed to a less expensive alternative, the price can be lowered as it will be more competitive.
