2006-06-21 13:00:56 · 5 answers · asked by Rebecca M 1 in Social Science ➔ Economics
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2006-06-21 13:02:43 · answer #1 · answered by mayur r 1 · 0⤊ 0⤋
Do you want to know what is the cause for demand being higher than supply? Or what would be the result (not "this would be the result" as you phrased it) of demand being higher than supply?
The reasons behind a high demand have to do with people's greater appreciation of pie, i.e. in economics terms, a higher marginal utility of pie. When demand increases and supply is fixed, the RESULT is higher prices, i.e. inflation. If demand is so high that supply cannot meet demand, then you have a shortage of supply, runaway inflation, as even rising prices offered to suppliers cannot meet demand.
2006-06-21 13:10:32 · answer #2 · answered by browneyedgirl 6 · 0⤊ 0⤋
Huh????????? let me try and sift your question and see if I can give you the answer you are looking for.
If the demand for pie exceed supply, what will occur is scarcity. When an item is scare what happens is people have to outbid each other to get the item. The person(s) who can bid the highest price would get the item. So what happens is the price rises.
I wish I could draw the demand curve for you but sadly I cant do it here. It would help you with understanding the relationship between demand and supply
2006-06-21 13:10:59 · answer #3 · answered by Simply Put 3 · 0⤊ 0⤋
recession....... because of inflation. The pie would only be consumed by those that could afford the highest prices, so the poor man would suffer.
2006-06-21 13:05:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Wouldn't the price go up?
2006-06-21 13:04:42 · answer #5 · answered by kidsworship2000 1 · 0⤊ 0⤋