Which best describes what happens to the amount of a good or service that is supplied to consumers? The amount of a good or service can change. increases.
What usually happens to the demand for a good or service when the price increases?
According to the law of demand, as the price of a good or service increases, the: Quantity demanded of the good or service will decrease . ... The demand for good A will decrease and the demand curve will shift to the left.
What happens when the quantity of a good supplied at a given price is greater than quantity demanded?
If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach equilibrium? The price of the product will increase to meet equilibrium. The price of the product will decrease to meet equilibrium . ... Supply and demand must be lowered.
Which best explains why the law of supply operates the way it is in a free enterprise economy?
Which best explains why the law of supply operates the way it does in a free enterprise economy? Companies want to be as profitable as possible. microeconomics. You just studied 10 terms!
Which best describes the role of availability of resources plays when a company is considering whether to produce a certain good?
quality of a good . ... Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good? Resources can always be obtained, no matter what the cost. If a resource is difficult to obtain, production costs will be high.
What is a good example of supply and demand?
A company sets the price of its product at $10.00. No one wants the product, so the price is lowered to $9.00. Demand for the product increases at the new lower price point and the company begins to make money and a profit.
What happens when the price of good increases?
The amount of a good, service, or resource that people are willing and able to sell during a specified period at a specified price. Other things remaining the same, • If the price of a good rises, the quantity supplied of that good increases . If the price of a good falls, the quantity supplied of that good decreases.
What is the minimum price for a good or service?
A price floor is the lowest price that one can legally charge for some good or service.
Why is excess supply bad?
When quantity supplied is greater than quantity demanded, the equilibrium level does not obtain and instead the market is in disequilibrium. An excess supply prevents the economy from operating efficiently .
What happens if demand is more than supply?
A shortage occurs when demand exceeds supply – in other words, when the price is too low. ... As a result, businesses may hold back supply to stimulate demand. This enables them to raise the price. A surplus occurs when the price is too high, and demand decreases, even though the supply is available.
Which best explains why the law of supply?
along a track in the same direction. Which statement best explains the law of supply? The quantity supplied by producers increases as prices rise and decreases as prices fall. ... As price decreases, supply decreases, but demand increases.
What is meant by the law of supply?
The law of supply says that a higher price will induce producers to supply a higher quantity to the market . Supply in a market can be depicted as an upward sloping supply curve that shows how the quantity supplied will respond to various prices over a period of time.
Which events could cause the change in demand shown?
Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods , and expectations about future conditions and prices.
Which best describes a reason that consumer demand can change?
Which best describes a reason that consumer demand can change? ... It helps consumers tell producers when prices are too high .
How should the factory respond to the increases in price of blue widgets?
Answer Expert Verified The law of supply says that the factory will respond by producing more blue widgets. Under the current model, input costs aside, the factory stands to make $100 dollars a day if both blue and green widgets are priced at $5 a widget.
Which is an example of a positive incentive for consumers?
Example of positive incentives for consumers will be a discount coupon or free sample of any product with the purchase of some other product .
