Want this question answered?
No, an increase in supply without a change in demand will cause the price to fall.
Prices falling can cause abnormal demand curve. Any kind of changes to the price, production, etc. can also cause abnormal curves in demand.
demand and supply are continually changing, causing some market-clearing prices to rise and some to fall; however these higher and lower prices cause some businesses in our economy to expand and others to contract.
Three examples that cause supply to increase are overproduction, inflation and lack of demand. Lack of demand for supply can create the supply to increase eventually.
Supply and demand cause price changes in a market as well as what the stock market does on a daily basis.
No, an increase in supply without a change in demand will cause the price to fall.
Prices falling can cause abnormal demand curve. Any kind of changes to the price, production, etc. can also cause abnormal curves in demand.
demand and supply are continually changing, causing some market-clearing prices to rise and some to fall; however these higher and lower prices cause some businesses in our economy to expand and others to contract.
Three examples that cause supply to increase are overproduction, inflation and lack of demand. Lack of demand for supply can create the supply to increase eventually.
Supply and demand cause price changes in a market as well as what the stock market does on a daily basis.
Make or stock more but sell higher until supply meets demand, usually selling at a fair market price will cause higher volumes of sales because more can afford it. Conversely, too much supply will cause you to sell for less until demand meets supply !
An increase in supply will cause a decrease in demand. The value of what is being supplied would also drop.
The supply of goods exceeded the demand
The supply of goods exceeded the demand
The supply of goods exceeded the demand
The supply of goods exceeded the demand
The supply of goods exceeded the demand