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When the price of a good or service is too low, it can lead to increased demand as consumers find it more affordable. However, this can result in a shortage, as producers may not be willing to supply enough at that low price, leading to an imbalance in the market. Ultimately, the low price may drive producers to cut back on production or exit the market altogether, potentially leading to higher prices in the future.
What else can I help you with?
What is the difference between price and supply?
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
What determines the price of a good or service in the market?
The price of a good or service in the market is determined by the interaction of supply and demand. When demand for a product is high and supply is limited, prices tend to rise. Conversely, when supply is high and demand is low, prices tend to fall. Other factors such as production costs, competition, and government regulations can also influence pricing.
What happens to the price of a good when supply is high but demand is low?
the price of the product gose downaka less $$$$$
What is highly elastic supply?
Highly elastic supply refers to a situation where the quantity supplied of a good or service responds significantly to changes in its price. When the price increases, producers can quickly increase production, and conversely, a price decrease leads to a sharp reduction in supply. This characteristic is often seen in markets where producers can easily adjust their output, such as in industries with low production costs or where resources can be readily reallocated. As a result, even small price fluctuations can lead to large changes in the quantity supplied.
Is it good to have a high inflation rate or low?
Low inflation is considered good because it represents price stability, which encourages productive planning and investment.
What is a price floor?
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service.
What's a good website for photo restoration service High quality service and low price tags.?
http://www.fixsr.com
What is the difference between price and supply?
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
Is 1chinawholesale.com safe to order?
i bought 20 real madrid soccer jersey from 1chinawholesale.high quality with low price and good custom service
Is it good to have a high closing price or a low closing price?
If you own the stock, it is good to have a high closing price. If you are short the stock or trying to buy the stock, then a low closing price.
Which wireless broadband internet provider has the best service for a low price?
It depends on what plan you choose. In general, some new providers like Cricket Wireless, Clearwire's wireless broadband service have better service for a lower price.
What prevents the price of a good from dropping too low?
price floor
McDonald's Corporation type of retail offering format?
Emphasizing in low price and fast service
Why are price floors implemented by governments and what is their purpose?
Price floors are implemented by governments to establish a minimum price for a particular good or service. The purpose of price floors is to protect producers by ensuring they receive a fair and stable income, prevent prices from dropping too low, and maintain market stability.
What determines the price of a good or service in the market?
The price of a good or service in the market is determined by the interaction of supply and demand. When demand for a product is high and supply is limited, prices tend to rise. Conversely, when supply is high and demand is low, prices tend to fall. Other factors such as production costs, competition, and government regulations can also influence pricing.
Where can I get a good TV for a low price?
To get a good television at a low price is when new and more advanced television are out in the market. you could try to wait for seasonal changes of the products where you can get really good deals for 'older' television which are still new and good.
What are the advantage and disadvantage of low cost airline and domestic airline?
Worse service,worse food,bad entertainment,good price. {exeptions =air tran,westjet,sunwing,and midwest}
