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That is commonly referred to as the law of supply and demand.
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∙ 11y ago
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∙ 13y agoprofit and loss
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According to Adam Smith what happens when the supply of a product increases?
The price decreases.
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
What happens to the equilibrium price when demand increases and supply decreases?
It goes up
According to Adam Smith what happens when the supply of a good decreases?
The price increases-
The Law of Supply and Demand states that if the supply of a product increases then the price of that product will?
decrease. It will also decrease if the demand decreases. Conversely, if the supply of a product decreases or if the demand increases, the price will increase.
What happens to the equilibrium price when demand increases and supply decreases?
It goes up
According to Adam Smith what happens when the supply of a product increases?
The price decreases.
According to Adam Smith what happens when the supply of a good decreases?
The price increases-
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
What happens when the supply of product decreases according to Adam smith?
The price increases
According to Adam smith what happened when the supply of product increases?
The price decreases.
The Law of Supply and Demand states that if the supply of a product increases then the price of that product will?
decrease. It will also decrease if the demand decreases. Conversely, if the supply of a product decreases or if the demand increases, the price will increase.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
What are the main determinats of price elasticity?
Well as demand increases the price will usually go up. As supply increases the price will usually go down. On the other hand if demand decreases the price will usually go down. If supply decreases the price will usually go up.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
What will happen when Aggregate demand and aggregate supply decrease?
When aggregate demand and aggregate supply both decrease, the result is no change to price. As price increases, aggregate demand decreases, and aggregate supply increases.
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
