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What is an increase in demand likely to lead to?
If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.
What is the Significance of cross elasticity in business decision making?
The degree of change in the demand for one product as a response to a change in the price of a different product. For example, an increase in the price of petroleum is likely to have a negative impact on the demand for gas-guzzling vehicles and a positive impact on the demand for fuel-efficient vehicles. The cross elasticity for substitutes is generally positive, in that a price increase for one product will result in an increase in demand for a substitute.
If income increases demand is likely to?
Increase
What would happen to a products price if the supply decreased?
If the supply of a product decreases while demand remains constant, the price of the product is likely to increase. This is because fewer available units create scarcity, prompting consumers to compete for the limited supply, which drives prices up. Conversely, if demand also decreases, the price may stabilize or even decline despite the reduced supply.
The demand for a product is likely to be more elastic when?
A product is likely to be more elastic the more dispensable or unnecessary it is to the consumer. For instance, if the price increases and the product is elastic, the consumer will not demand as much because they can do without it.
What is most likely to happen to the prices of a product if demand and supply increase at the same rate?
prices stay stable. studddy islannd ! :)
What is an increase in demand likely to lead to?
If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.
What is the Significance of cross elasticity in business decision making?
The degree of change in the demand for one product as a response to a change in the price of a different product. For example, an increase in the price of petroleum is likely to have a negative impact on the demand for gas-guzzling vehicles and a positive impact on the demand for fuel-efficient vehicles. The cross elasticity for substitutes is generally positive, in that a price increase for one product will result in an increase in demand for a substitute.
If income increases demand is likely to?
Increase
What would happen to a products price if the supply decreased?
If the supply of a product decreases while demand remains constant, the price of the product is likely to increase. This is because fewer available units create scarcity, prompting consumers to compete for the limited supply, which drives prices up. Conversely, if demand also decreases, the price may stabilize or even decline despite the reduced supply.
The demand for a product is likely to be more elastic when?
A product is likely to be more elastic the more dispensable or unnecessary it is to the consumer. For instance, if the price increases and the product is elastic, the consumer will not demand as much because they can do without it.
Can you provide an example of how the principle of supply and demand affects pricing in the market?
The principle of supply and demand affects pricing in the market by influencing the balance between the availability of a product (supply) and the desire for that product (demand). For example, if there is a high demand for a limited supply of a product, the price is likely to increase as sellers can charge more due to the scarcity of the item. Conversely, if there is a surplus of a product and low demand, the price may decrease as sellers lower prices to attract buyers.
Is the degree of responsive with which quantity demanded changes due to changes in the price of a product?
Yes. Imagine you are in the market to buy a sports car. A $100 increase in price is not likely to affect the quantity you will demand. However, if you are in the market for bananas a $100 increase in price will definitely affect the quantity you will demand.
If a product becomes more easily available what is likely to happen?
If a product becomes more easily available, we can expect an increase in its demand as consumers find it more convenient to purchase. This heightened accessibility may lead to lower prices due to increased competition among suppliers. As a result, overall consumption of the product may rise, potentially impacting market dynamics and consumer behavior.
What is an example of econmic?
An example of an economic concept is supply and demand, which describes how the availability of a product (supply) and the desire for that product (demand) interact to determine its price. For instance, if a new smartphone is released and is highly desired (high demand) but is produced in limited quantities (low supply), the price is likely to increase. Conversely, if there is an oversupply of a product with little demand, prices may decrease. This fundamental principle helps explain market behavior and pricing strategies.
When demand for an item decreases and the supply increases the price of the item will likely?
The price of the item will likely decrease - as there're more stock than demand for the product.
What would most likely increase the price of a product in a market economy?
In a market economy, the price of a product is likely to increase due to heightened demand or reduced supply. For example, if consumer interest in a product surges, sellers may raise prices to capitalize on the demand. Conversely, if production costs rise or there are supply chain disruptions leading to fewer goods available, scarcity can drive prices up. Additionally, external factors like increased taxes or tariffs can also contribute to higher prices.
