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What happens when excess demand occurs in an unregulated market?

Excess demand in an unregulated market will cause the price of a product to fall. True or False?


If there is excess demand for a product or service what will happen to the price?

there is consumer advice


What happens to the price of a good or service when there is excess demand?

When there is excess demand for a good or service, the price typically increases. This is because the high demand creates a scarcity of the product, leading sellers to raise prices to balance supply and demand.


What situation can lead to excess demand?

Scarcity of the product, or if the price of the product has dropped. JohnnyChampagne's answer: When quantity demanded is more than quantity supplied. When the actual price in a market is below the equilibrium price, you have excess demand, because a low price encourages buyers and discourages sellers.


What does a raise in the price of a product cause?

The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.


Which situation best illustrate the concept excess demand?

Currently, due to rumors of gun control legislation, there is an excess demand for high capacity magazines. You can see the results of excess demand by searching for high capacity magazines for sale. Every venue that offers them for sale has nothing in stock. Places that do have them in stock are asking extraordinary prices for them. Therefore, the example of excess demand of high capacity magazines illustrates that excess demand causes scarcity of product and inflation of price. Conversely, excess supply will likely cause decreased prices.


How do you response for excess demand and excess supply?

Increase the price


Which would cause an increase in the demand for production A?

A decrease in the price of a complementary product B.


When does excess demand occur in the equilibrium price?

Excess demand occurs when demand outweighs supply. This means there is a shortage of a good.


What happens to price when there is excess demand?

then the price goes up


What does A raise in the price of a product causes?

The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.


Change in market price?

Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.