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Why would a shortage of OPEC oil at current market prices increase oil prices?
Wiki User
∙ 14y ago
Because world wide demand would still continue and demand or even the percieved demand is what controls the market.
Wiki User
∙ 14y ago
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What happens to prices when there is a shortage in the market?
The price goes up if the demand is high
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
How does the price system in a free market economy react to shortage of commodity?
Higher prices
How does a price ceiling undermine the rationing function of market-determined prices?
A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.
When do shortage occur?
Shortages occur when producers will not or can't offer goods or services at current prices.
What happens to prices when there is a shortage in the market?
The price goes up if the demand is high
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
How does the price system in a free market economy react to shortage of commodity?
Higher prices
How does a price ceiling undermine the rationing function of market-determined prices?
A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.
When do shortage occur?
Shortages occur when producers will not or can't offer goods or services at current prices.
When a stortage exists in a market and price?
rises, it means that there is high demand for a product or service but limited supply. The increase in price serves as a signal to suppliers and encourages them to increase production to meet the demand. However, if the shortage persists, it can lead to prolonged high prices and potential imbalances in the market.
What is a main factor driving prices for good and services upward?
The increase of demand and the shortage of supplies or service.
Why prices of gold increase or decrease in the market?
Because pickles
How does the market determine the price and the quantity supplied in demand?
it depends upon the demand of the people.... if demand of a particular commodity increases then the supply will automatically increase and in case of shortage, the suppliers would raise the prices of that specific good.
What can happen to prices in a competitive market when demand increases as supply remains the same?
increase in prices
What happens when supply is greater than demand?
The price declines until demand increases.
What is meant with stock market prices in finances?
Stock market prices are constantly changing. To find out more information about current stock market prices I suggest you go to en.wikipedia.org/wiki/Financial market where you will find the information you are looking for.
