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when the supply of a commodity increases but demand remains constant then price of the commodity falls which is called deflation with the result unemployment rises.on the other hand if supply rises and if demand also rises with same rate then this would have positive effect on the economy as the employment rises with out inflation.
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∙ 13y ago
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What happens to price if supply increases?
Supply will increase.
If the number of sellers in a market increases what happens?
supply increases
What happens when the price of item a increases?
the supply of the item will decrease
What happens when the demand for a product decreases?
When demand decreases, supply increases.
What happens when price of a good increases?
So the supply also increase's.
What happens to price if supply increases?
Supply will increase.
If the number of sellers in a market increases what happens?
supply increases
What According to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
What happens when the price of item a increases?
the supply of the item will decrease
What happens when the demand for a product decreases?
When demand decreases, supply increases.
What happens when price of a good increases?
So the supply also increase's.
When according to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
What happens when demand of a good Increases?
Given supply, if demand of any good increases it raises the prices of the good.
What happens when demand for a good increase but it's supply decrease?
The price for the good increases
According to Adam Smith what happens when the supply of a product increases?
The price decreases.
According to Adam Smith what happens when demand for a good increases?
The supply decreases.
According to Adam smith What happens when demand for a product decreases?
Supply increases.
