ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When the price people will pay for it goes down
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When demand decreases
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When they can sell it for a higher price
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When the economy turns downward
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Detailed explanation-1: -The higher the price, the higher the quantity supplied. Lower prices mean reduced supply, all else held equal. Higher prices give suppliers an incentive to supply more of the product or commodity, assuming their costs aren’t increasing as much.
Detailed explanation-2: -It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.
Detailed explanation-3: -Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less.
Detailed explanation-4: -When increase in supply is more than increase in demand the equilibrium price reduces and the equilibrium quantity increases. This is because, when supply Is more than demand, quantity supplied increases from Q to Q1 and the price will reduce from P to P1to bring the market at a new equilibrium point which is E1 .
Detailed explanation-5: -The law of supply and demand is the theory that prices are determined by the relationship between supply and demand. If the supply of a good or service outstrips the demand for it, prices will fall. If demand exceeds supply, prices will rise.