answersLogoWhite

0

changes in relative prices are the driving force in the market mechanism

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

A graph example of supply increase without changes in demand?

If a seller increase supply without changes in demand, his business will not last. He will have more supply than demand.


What happens if there is not enough supply for the demand?

If there is not enough supply for the demand, the demand won´t be able to buy the supply


What happens if demand curve interacts with the supply curve?

Then demand and supply are equal.


What According to the law of supply and demand when supply increases what else happens?

According to the law of supply and demand when supply increases, prices will decrease.


What happens when the demand for a product decreases?

When demand decreases, supply increases.


What happens when demand is greater than demand?

When demand is greater than supply a supply shortage or scarcity arises and prices increase.


What changes the equilibrium quantity to change?

It changes when the market demand and or market supply changes.


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 happens to prices when demand is greater than suply?

They rise. Supply & demand.


How do changes in supply and demand impact the equilibrium price of a product?

Changes in supply and demand impact the equilibrium price of a product by influencing the balance between how much of the product is available (supply) and how much people want to buy (demand). When supply increases or demand decreases, the equilibrium price tends to decrease. Conversely, when supply decreases or demand increases, the equilibrium price tends to increase.


What happens to the supply and demand of diesel in the winter?

jack


What happens to both the supply and demand as the price decreases?

If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .