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What motivates suppliers to increase production in the face of high demand and high prices?
Wiki User
∙ 12y ago
The suppliers increase production with higher prices because there is more profit margin.
Wiki User
∙ 12y ago
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Why is the demand for labor referred to as a derived demand?
Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
What best describes the economic effect that results from a government budget surplus?
Overall demand decreases reducing the incentive for producers to increase production
Which would cause an increase in the demand for production A?
A decrease in the price of a complementary product B.
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
How does the market determine the price and the quantity supplied in demand?
it depends upon the demand of the people.... if demand of a particular commodity increases then the supply will automatically increase and in case of shortage, the suppliers would raise the prices of that specific good.
What motivates suppliers to increase production the face of high demand and high prices?
The suppliers increase production with higher prices because there is more profit margin.
How can an organization encourage suppliers?
an organisation can encourage suppliers by reducing their production cost so as to meet with customers demand for their good in relative to their standard of living.at such they will tend to, buy more hence an increase in price relative to the numerous demand e on the market
When a stortage exists in a market and price?
rises, it means that there is high demand for a product or service but limited supply. The increase in price serves as a signal to suppliers and encourages them to increase production to meet the demand. However, if the shortage persists, it can lead to prolonged high prices and potential imbalances in the market.
Why is the demand for labor referred to as a derived demand?
Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
What best describes the economic effect that results from a government budget surplus?
Overall demand decreases reducing the incentive for producers to increase production
What increase has the demand for services seen in recent times?
The second change was an increased demand for services. The growth in demand for services--and resulting production--continues to increase at a faster rate than the demand for manufactured goods.
Which would cause an increase in the demand for production A?
A decrease in the price of a complementary product B.
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
How does the market determine the price and the quantity supplied in demand?
it depends upon the demand of the people.... if demand of a particular commodity increases then the supply will automatically increase and in case of shortage, the suppliers would raise the prices of that specific good.
Why a producer would continue to increase output even though the marginal cost?
...of production may be rising? Answer: Because of increase in demand.
In which situation would the price of a good most likely increase?
A rise in demand happens to quickly for produces to increase production to keep up.
Reasons caused the rapid increase of slave labor after 1680?
Possibly the dependency of slave labor for cotton production that was in high demand. It was cheep and demand was high.
