ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumers will pay more for a product if the supply of that product increases. A supply curve demonstrates the relationship between price and the quantity of a product supplied. As competition increases, businesses find greater opportunities for success.

Detailed explanation-2: -As a result of this shortage, consumers will offer a higher price for the product. As the price increases, producers are willing to supply more of the good, but the quantity demanded by consumers will decrease.

Detailed explanation-3: -The availability of alternatives or substitute goods can affect demand elasticity. 1 Hence, the demand for goods or services with many substitutes is highly price elastic; a small increase in the price levels of goods causes consumers to buy its substitutes.

Detailed explanation-4: -The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Because businesses seek to increase revenue, when they expect to receive a higher price for something, they will produce more of it.