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Adam Smith, in his book The Wealth of Nations, laid out the relationship between supply and demand and how scarcity and abundance will cause the price of a commodity to go up or down.
Wiki User
∙ 11y ago
Wiki User
∙ 13y agoAdam Smith. He is often credited as the "father" of economics.
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What happens if there is more supply than demand?
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.
How does supply and demand affect consumers?
Supply and demand are vital to consumers. If a product is in high demand the supply has to go up which can increase prices because of the demand. Prices end up going up because more has to be shipped and it would have to get to the location of demand in a certain time.
What would happen to supply if demand when up?
supply will increase.
What came first supply or demand?
Sometimes supply, sometimes demand. Certain items are invented before there is a great demand for them. EX: a piano. Other items are created because there is a great demand already. EX: the automobile.
When demand for more product happends the price goes up?
Yes, since supply is reduced. Law of supply & demand.
What does supply and demand have in common?
They're both words that came up a lot in commerce.
What happens if theres more demand than supply?
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.
What happens if there is more supply than demand?
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.
What is supply relationships?
I take it you mean what is the relationship of supply and demand. As the supply goes up the price will come down. As the demand goes up the price will go up. If the supply and demand are in balance the price will stay the same.
How does supply and demand affect consumers?
Supply and demand are vital to consumers. If a product is in high demand the supply has to go up which can increase prices because of the demand. Prices end up going up because more has to be shipped and it would have to get to the location of demand in a certain time.
What would happen to supply if demand when up?
supply will increase.
What came first supply or demand?
Sometimes supply, sometimes demand. Certain items are invented before there is a great demand for them. EX: a piano. Other items are created because there is a great demand already. EX: the automobile.
How does products supply impact its price?
When supply increases and demand decreases, the price goes down. When supply goes up and demand stays the same, price also goes down. When demand goes up and supply either stays the same or decreases, then the price goes up
What is the rule of price in economics?
Price is tied to supply in demand. If there is a short supply and big demand, price goes up. If there is a short supply and low demand, price will remain steady. If supply is high and demand small, price will go down.
When demand for more product happends the price goes up?
Yes, since supply is reduced. Law of supply & demand.
What happens to supply when demand increase?
When the demand of a product increases, so will the supply. Manufacturers will produce more of the product in order to get more money.
What is the concept of economy?
The concept of Economy is supply equals demand. Without demand there would be no supply which helps make up the economy.
