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What would happen to the supply The price of the commodity decreases?
Wiki User
∙ 10y ago
If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.
Wiki User
∙ 10y ago
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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.
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 is the difference between supply and demand?
Demand refers to the quantity of a commodity which a consumer is willing to buy at a given price in a given period of time.Supply is quantity of a commodity that a seller or producer is willing to sell at a given price in a given period of time.Demand and price of a commodity have inverse relationship i.e. when price of a commodity increases it1s demand decreases and vice-versa; whereas the opposite is the case for supply i.e. price of a commodity is directly related to supply, the quantity supplied of a commodity rises with the rise in its price and vice-versa.
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
How does price of commodity influence supply?
It's actually the other way around: the supply of a commodity influences its price, in that the more of the commodity you have, supposedly the lower the price to get people to buy more of it.
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.
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 is the difference between supply and demand?
Demand refers to the quantity of a commodity which a consumer is willing to buy at a given price in a given period of time.Supply is quantity of a commodity that a seller or producer is willing to sell at a given price in a given period of time.Demand and price of a commodity have inverse relationship i.e. when price of a commodity increases it1s demand decreases and vice-versa; whereas the opposite is the case for supply i.e. price of a commodity is directly related to supply, the quantity supplied of a commodity rises with the rise in its price and vice-versa.
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
How does price of commodity influence supply?
It's actually the other way around: the supply of a commodity influences its price, in that the more of the commodity you have, supposedly the lower the price to get people to buy more of it.
How does the price affect the supply of commodity?
Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.
How does the law of supply and demand work?
In the event that the interest for a product increments, yet the inventory doesn't increment similarly, the cost will increment. On the off chance that the inventory of a ware increments, however the interest for that ware doesn't increment similarly, the cost will diminish. On the off chance that the interest for a product diminishes, yet the stock doesn't diminish similarly, the cost will diminish. In the event that the inventory of an item diminishes, yet the interest doesn't diminish similarly, the cost will increment.
Will consumer buy more when price of a commodity falls?
according to law of demand consumer buy more of the commodity when price decreases
If demand decreases and supply is constant what happens to the equilibrium price?
If demand decreases and supply is constant, the price will increase.
What will happen to the equilibrium price level and the real GDP if the aggregate demand decreases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
What does scarcity means in basic economic problem?
All other factors unchanged, as a commodity become more scarce, market price tends to rise. Supply and demand. Assuming that demand remains the same, as supply decreases, market price rises.
What is the basic determinant of price of a commodity?
its demand , supply
