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Because as prices decline, they would get less profit from the act of producing these goods.
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∙ 13y ago
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Contract and compare supply and demand?
supply ,higher prices, producers are willing to offer more products for sale than at lower prices.and the can increases the prices . and demand is was higher price for the companies.for the constomers
Which of these statements refers to the law of supply?
producers will supply as the good price Producers will supply more of a product as the price goes up. A+
What happens to supply curve when more producers enter the market?
In normal circumstances, ceteris paribus, the supply curve shifts left as competition drives down prices.
What happens to supply when more producers enter the market?
Supply goes up, so competition rises - and prices should go down, unless demand increases comeasurately.
In a free market what impact does a shortage have on consumers?
Cosumers will buy more of the product and it will discourage producers
Contract and compare supply and demand?
supply ,higher prices, producers are willing to offer more products for sale than at lower prices.and the can increases the prices . and demand is was higher price for the companies.for the constomers
Which of these statements refers to the law of supply?
producers will supply as the good price Producers will supply more of a product as the price goes up. A+
What happens to supply curve when more producers enter the market?
In normal circumstances, ceteris paribus, the supply curve shifts left as competition drives down prices.
What happens to supply when more producers enter the market?
Supply goes up, so competition rises - and prices should go down, unless demand increases comeasurately.
In a free market what impact does a shortage have on consumers?
Cosumers will buy more of the product and it will discourage producers
Why is the aggregate supply curve upward sloping?
At a higher price level, producers are willing to supply more real output. The Profit Effect: When the price level rises, output prices rise relative to input prices (costs), which raises producers' short-run profit margins. So producers can make more money because it costs way more to buy a product in this case than to produce it before everything has had time to adjust. The Misperception Effect: producers are fooled by price changes in the short-run. they increase productivity even though the price is not rising relative to other products, all prices are rising.
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
How do falling prices affect supply?
The quantity demanded rises.Explanation: The lower a prize becomes the more people will want to buy that certain good no matter what the good may be.Falling prices discourage suppliers because of dwindling profits and when suppliers shy away, shortage arises as well.
What gived producers the incentive to produce more?
Supply & demand. Supply=how much of something is available. Demand=how much of something people want. More demand = more supply.
When 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.
Oil producers expect that oil prices next year will be higher than oil prices this year As a result oil producers are most likely to?
place more oil on the market this year
Why cant the producers in some ecosystems make an unlimited supply of organic material?
One or more nutrients are in short supply.
