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What happens to price and quantity when price increases?You'll also notice that each market change causes a uniquely identifiable change in the price, quantity combination: Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases. Supply Increase: price decreases, quantity increases.
What happens to the price of a good if demand increases goes up?The same inverse relationship holds for the demand for goods and services. However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa.
What happens to the price of a good and the quantity of a good produced when that good is subsidized?If the government decides to subsidize the production of a good, the result would be a decrease in the equilibrium price and a decrease in the equilibrium quantity. If the price of one of the resources used to produce a good decreases: The supply curve for that good would shift right.
What will happen to the price of a good if there is an increase in supply above the equilibrium point?If the price is above the equilibrium level, then the quantity supplied will exceed the quantity demanded. Excess supply or a surplus will exist. In either case, economic pressures will push the price toward the equilibrium level.
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