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Higher demand, the higher the price goes. Remove the demand for something and then the price drops.
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∙ 16y ago
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Relationship between demand and supply?
1:inverse relationship between supply and demand 2:supply depends upon the demand of a commodity, that it might be positive or negative. 3:supply always depends upon demand but demand never depends to supply. 4:a supply never affects the demand of a commodity but demand always affect to its supply. 5:demand is the initial stage but supply is the stage after demand. 6:supply have a positive relations to price whereas demand has a negative relations with price. 7:supply and price has a direct relations or positive relation. 8:law of supply relates to the price and supply of a particular commodity in a particular time period. 9:price has a connections with demand and supply that it affects both supply in a positive way and demand in a negative way and if price changes then both demand and supply will change. 10:demand curve shows the changes positions of demand in a different price level of a particular commodity where demand schedule also shows the changes positions of demand in a different price level of a particular commodity, hence both have a common objectives to depict the same result in a different way.
What is the difference between income elasticity demand and price elasticity demand?
price elasticity is the degree to which demand for a good will change relative to a change in the price of that good. Income elasticity is the degree to which demand for a good will change relative to a change in the spending power of the consumer. it is the percentage change in quantity demanded/percentage change in price.
Why is there an inverse relationship between demand and price?
If something is in high demand but there is a limited supply of it then the price goes up. Kinda of like the price of gasoline. There isn't a limited supply and alot alot of people need it for their cars and other things etc so it drives the price. If there isn't a high demand for it then the price is generally reasonable. They are inversely related. Directly related is supply and demand.
What is the importance of price elasticity of demand in decision making with regards to choosing the best pricing strategy to maximize revenue?
Supply + Demand = Price
How much are the bus fares from PE to Johannesburg by Intercape Bus sleepliner?
The price changes from day to day. For an up to date price, check their website.
How can population changes affect demand for certain goods?
immediate demand for a good will go up if it's price is expected to rise. this is how population changes affect demand for certain goods.
Is the degree of responsive with which quantity demanded changes due to changes in the price of a product?
Yes. Imagine you are in the market to buy a sports car. A $100 increase in price is not likely to affect the quantity you will demand. However, if you are in the market for bananas a $100 increase in price will definitely affect the quantity you will demand.
How may changes in prices affect the demand for a good?
Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.
Price elasticity of demand for luxury goods will be?
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
What effects supply and demand?
Fluctuations in the price of goods. The affect of demand on price is directly proportional and supply's affect on price is indirectly proportional.
When a change in price does not lead to changes in demand the demand is called?
inelastic demand
How does supply and demand affect the price of a product?
the higher the demand the higher the price.the lower the demand the lower the price.
What is perfect elastic of demand?
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
When price changes there is an opposite change in?
Demand
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
How do price changes affect equilibrium?
Price changes affect the equilibrium price and quantity by Serving as a tool for distributing goods and services.
How does an increase in a products price affect demand for the demand for the product's complements?
It can affect demand because of individual low income earner.
