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The price rise.
With respect to classical economics (all things being equal) there are two possible situations which represent price increases:
- An increase in price due to supply side factors (generally the cost of inputs or the cost of labour) the supply curve increases (moves upwards) and intersects with the demand curve at a higher price. In this case the demand curve is not affected. Only the supply curve has risen.
- An increase in demand (due to changing market pressures). In this case the demand curve has increased (risen) and now intersect the supply curve at a higher position. In this case the demand curve is higher than it was previously.
What else can I help you with?
What usually happens to the demand for a good or service when the price increases?
When the price of a good or service increases, the demand for it usually decreases.
What happens to the demand for the main good if the price of a complementary good increases?
If the price of a complementary good increases, the demand for the main good typically decreases.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
If supply increases and demand is constant price will what?
In the short run nothing happens to price
What happens to the equilibrium price when demand increases and supply decreases?
It goes up
What usually happens to the demand for a good or service when the price increases?
When the price of a good or service increases, the demand for it usually decreases.
What happens to the demand for the main good if the price of a complementary good increases?
If the price of a complementary good increases, the demand for the main good typically decreases.
What happens when demand for a good increase but it's supply decrease?
The price for the good increases
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
If supply increases and demand is constant price will what?
In the short run nothing happens to price
What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?
Equilibrium price increases
When the price of a compliment of commodity X falls what happens to the demand for X?
it increases
What happens to the equilibrium price when demand increases and supply decreases?
It goes up
What usually happens to the price of a good when the demand for it is higher than the supply available?
What ever the demand is it's scarce
What happens is the price falls below the market clearing price and there is no equilibrium?
Quantity of demand increases and supplies decreases.
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
As price falls along a particular demand curve what happens to consumer surplus?
it always increases
