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IN THEORY, the on-hand quantity of a product will increase when the price goes up, because people will buy less of it.
In reality, price and supply aren't very well connected.
The price could have gone up to discourage people from buying something there's a shortage of. Obviously the supply of such an item will go down because...well, we're out of it.
Supply could also go up when price goes up because they're still making a lot of it but people aren't buying any for whatever reason.
This has also happened: when the price goes up, supply goes down because people have started buying MORE of it. This happens with gasoline in the summer.
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∙ 12y ago
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Which of these statements refers to the law of supply?
producers will supply as the good price Producers will supply more of a product as the price goes up. A+
What happens when supply goes down?
when supply goes down the price goes up>
What is the Law of Supply and demand?
When the supply goes down, the price goes up because there is a shortage and there are less to be sold. When supply goes up on account of high prices, the price goes down because there is a surplus. If the demand goes up, the price goes up because people will pay more for it than usual. If the demand goes down due to the increased price, the price goes down.
What is price based on?
supply and demand. if the supply is up, the price is down. if the demand is up, the price goes up. Addition... It is also based on the value of the currency being used to purchase the thing. When the value of the currency goes down, the price goes up.
What happen if the demand exceed the supply of a resource?
The price usually goes up. If lots of people want something, you have to pay more to get it.
How does products supply impact its price?
When supply increases and demand decreases, the price goes down. When supply goes up and demand stays the same, price also goes down. When demand goes up and supply either stays the same or decreases, then the price goes up
Which of these statements refers to the law of supply?
producers will supply as the good price Producers will supply more of a product as the price goes up. A+
What happens when supply goes down?
when supply goes down the price goes up>
What is supply relationships?
I take it you mean what is the relationship of supply and demand. As the supply goes up the price will come down. As the demand goes up the price will go up. If the supply and demand are in balance the price will stay the same.
What is the Law of Supply and demand?
When the supply goes down, the price goes up because there is a shortage and there are less to be sold. When supply goes up on account of high prices, the price goes down because there is a surplus. If the demand goes up, the price goes up because people will pay more for it than usual. If the demand goes down due to the increased price, the price goes down.
What is price based on?
supply and demand. if the supply is up, the price is down. if the demand is up, the price goes up. Addition... It is also based on the value of the currency being used to purchase the thing. When the value of the currency goes down, the price goes up.
What happen if the demand exceed the supply of a resource?
The price usually goes up. If lots of people want something, you have to pay more to get it.
What are example of product with perfectly elastic and perfectly inelastic supply?
Elasticity of supply describes how a product's quantity affects its price. Milk, for example, has an elastic supply - the quantity goes up and the price goes down. Or, as the quantity is limited, the price goes up. Inelastic supply implies that availability does not affect price, such as with airplane flight tickets.
What will happen if the price of butter goes up?
gaers up
How does scarcity impact economic decisions?
Supply and demand. When the supply is low the price usually goes up.
What happens when supply goes up?
When supply goes up, price will go down. This is a result in the shift of the equilibrium price. Drawing graphs will help you conceptualize the results of different curves shifting in different directions.
What is the rule of price in economics?
Price is tied to supply in demand. If there is a short supply and big demand, price goes up. If there is a short supply and low demand, price will remain steady. If supply is high and demand small, price will go down.
