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What happens to the price of a good when supply is high but demand is low?
Wiki User
∙ 9y ago
the price of the product gose down
aka less $$$$$
Carson Boos
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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 when inflation falls?
Supply & Demand, EconomicsEconomic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.
What is the difference between price and supply?
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
What happens when you have a surplus of goods to price?
What happens is there is too much of a good and not enough demand. This is called over supply and usually occurs when the current price level for the good is too high. To sell off the remaining goods, the solutions is to lower the price level and increase demand.
What happens to the price of the good when the supply of a good increases and the demand stays the same?
For normal goods, increasing supply, given a constant demand, causes the price to go down. The good is easier to acquire. Abundance naturally lowers price. Ubiquitous goods are essentially free. This is not true for all goods, but it usually will be.
What happens when demand for a good increase but it's supply decrease?
The price for the good increases
What happens when the price of a good drops?
Supply & Demand, EconomicsEconomic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.
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 when inflation falls?
Supply & Demand, EconomicsEconomic studies tell us that when the price of a good drops, demand will rise. Furthermore, when the price of a good rises, demand will go down.
What is the difference between price and supply?
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
What happens when you have a surplus of goods to price?
What happens is there is too much of a good and not enough demand. This is called over supply and usually occurs when the current price level for the good is too high. To sell off the remaining goods, the solutions is to lower the price level and increase demand.
What happens to the price of the good when the supply of a good increases and the demand stays the same?
For normal goods, increasing supply, given a constant demand, causes the price to go down. The good is easier to acquire. Abundance naturally lowers price. Ubiquitous goods are essentially free. This is not true for all goods, but it usually will be.
What price when demand is zero?
If demand is zero, then the equilibrium price is zero and it would be unwise to supply such a good or service.
What if supply exceeds demand?
When supply exceeds demand, it is known as a surplus.Surpluses only occur among rational producers and consumers if a regulatory price floor is in effect (that is, the government mandates that the price of the good or service in question not go below a certain level). If no such regulation is in place, the price of the good or service will lower to the point where supply and demand are equal to one another.If the price of the good is lowered, then demand will increase.
What happens to consumer surplus if the price is above equilibrium?
When the price is above equilibrium, there is a surplus because supply is greater than demand. The price of the good will naturally decrease back to its equilibrium price where demand and suppy interesect, thus eliminating the surplus.
What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What is needed to determine the equilibrium price of a good or services?
a supply curve and a demand curveA supply curve and a demand curve.
