0
when quantity supplied is higher than the quantity demanded, there is an excess of goods produced which are not used which leads to surplus. as the people are not consuming the goods or buying them, they are remaining and must be destroyed or controlled by the government through price control schemes or interventions such as setting up a price price floor to control surplus
Wiki User
∙ 14y ago
Wiki User
∙ 8y agoIf supply is greater than demand, the price in the shops should drop as shopkeepers' try to sell off stock that customers aren't buying. Unsold or poorly selling stock takes up room in shops and warehouses, and represent dead money.
Add your answer:
Earn +20 pts
What happens when GDP decreases?
theres less money
What is water poverty?
water poverty:were theres less water. people don't have enough water
With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals?
im not too sure if im correct but injections exceeding withdrawals mean inflation increases as theres TOO MANY PEOPLE AND MONEY CHASING TOO FEW GOODS....this means that producers will increase the price of the good so that they will be able to bring demand to an equilibrium point... because inflation has increased the monetary committee will increase interest rates thus causing unemployment to increase as producers will not be able to pay wages ......... or something like that ONCE AGAIN IM NOT COMPLETELY SURE IF IM RITE
What are the different types of currency?
Theres pounds US Dollars Australian Dollars
How do you put 1000000000 dollars in one bill?
Theres no such thing as that high of a bill.
What happens when theres an increase in demand follwed by an increase in supply?
Someone makes money
What happens when theres an increase in demand and a decress in supply?
An increase in price occures, and quantity will remain unchanged.
What happens if theres more demand than supply?
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.
What happens when the brainstem gets damaged?
You will be paralyzed forever. Thats all I know so yeah! Sorry if theres not enough info.
What happens when GDP decreases?
theres less money
What happens when it rains too much?
Theres a Flood
What happens when you run out of quests in Pixie Hollow?
Nothing happens. Theres a new quest every time you finish a quest. Sometimes theres a glitch and theres NO quests to choose. If that happens to you. You can still tailor and do stuff. Usually this kind a quest glitch DOESN'T happen. If it does you gotta call the game ADMIN about it
What happens if you eat pee?
My question is...who would ever do that?. Theres your answer!!
Why will white tigers go extinct?
Becuase theres not enough of them
What you mean by internal electrical power supply?
its when theres a power supply inside like a power pack so u can carry it around with u
What weather does lightning happen in?
It Usually Happens When It Rains Or When Theres Fog.
What can you eat to be slim?
Eat healthy, if your staring at you plate and theres not enough color you arent getting enough variaty.
