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Imagine there's a fabric that makes buttons and maybe in average 10.000 buttons are sold in a month. So the fabric produces enough buttons but not many more because there would be too many at the end. So now suddenly more people want buttons. Let's say 100.000 buttons in only one month. Well, there aren't so many buttons produced so the price goes up as more people want the same thing.
It is like with a expensive painting. The more people want the painting the more you would have to pay to get it.
After a while the buttons fabric either sees that they need to produce more or they think it is just a hyp and they won't produce more. Because that would mean they need to hire new people and if the hyp is over they would need to fire them again.
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∙ 12y ago
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What are the reasons for negative relationship between price and quantity demanded?
Price and demand have an inverse relationship. Therefore, if the price goes up, the demand goes down; the price goes down, the demand goes up.
What happens when price goes up in elasticity of demand?
demand goes down
What is the Law of Supply and demand?
When the supply goes down, the price goes up because there is a shortage and there are less to be sold. When supply goes up on account of high prices, the price goes down because there is a surplus. If the demand goes up, the price goes up because people will pay more for it than usual. If the demand goes down due to the increased price, the price goes down.
What happens to price when there is excess demand?
then the price goes up
The law of Demand?
The law of demand states that as price of an object goes up, the quantity goes down. However, as the price falls then quantity rises. IF price falls, demand increases and if price rises, demand decreases.
What are the reasons for negative relationship between price and quantity demanded?
Price and demand have an inverse relationship. Therefore, if the price goes up, the demand goes down; the price goes down, the demand goes up.
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 happens when price goes up in elasticity of demand?
demand goes down
What is the Law of Supply and demand?
When the supply goes down, the price goes up because there is a shortage and there are less to be sold. When supply goes up on account of high prices, the price goes down because there is a surplus. If the demand goes up, the price goes up because people will pay more for it than usual. If the demand goes down due to the increased price, the price goes down.
What happens to price when there is excess demand?
then the price goes up
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.
The law of Demand?
The law of demand states that as price of an object goes up, the quantity goes down. However, as the price falls then quantity rises. IF price falls, demand increases and if price rises, demand decreases.
What is price based on?
supply and demand. if the supply is up, the price is down. if the demand is up, the price goes up. Addition... It is also based on the value of the currency being used to purchase the thing. When the value of the currency goes down, the price goes up.
What is a demand driven?
Usually the prices of goods and services are demand driven. When the demand for an item is high its price usually goes up and similarly when the price of an item is low its price usually goes down.
The principles that states that the consumer will buy less as the price increases?
supply and demand/ it states that as the price of a good or service goes down the more demand will increase and as the price goes up demand decreases
What is it called when the price of a product goes down and the demand goes up?
A deal.
What happens after the demand for a fad drops?
The price goes down, and the quantity supplied goes up
