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What would most likely happen to the price of a product if the supply of that product decreased?
Supply is inversely proportional to inflation, so the priceof the product will decrease
When does equilibrium price in economics happen?
equilibrium price in economics happens when demand for and supply of the products equals
What might happen to make a producer decrease his or her supply of a product.?
Because if the factor price is increased, the producer will have less resources to make their product and will have less products to supply
What happens to the price when there is an excess supply of products?
The price goes down because of supply and demand.
If the price of resources increases what will happen to supply?
supply will decrease
What would most likely happen to the price of a product if the supply of that product decreased?
Supply is inversely proportional to inflation, so the priceof the product will decrease
When does equilibrium price in economics happen?
equilibrium price in economics happens when demand for and supply of the products equals
What will happen when products are in excess?
That will tend to make the price drop. For more details, do some reading on "supply and demand".
What might happen to make a producer decrease his or her supply of a product.?
Because if the factor price is increased, the producer will have less resources to make their product and will have less products to supply
What happens to the price when there is an excess supply of products?
The price goes down because of supply and demand.
If the price of resources increases what will happen to supply?
supply will decrease
Explain the law of supply in your own words?
Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc
What happen if price floor is above equilibrium price?
In a competitive market, it will produce an excess of supply (for the floor price, supply is bigger than demand)
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.
When aggregate supply exceeds aggregate demand what will happen to the price level?
The price will go down.
What would happen to the supply The price of the commodity decreases?
If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.
What would happen to the price level if AD decreased?
If AD increased, all else being equal, the price level would increase.
