Any help on demand and supply?

Question

An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied. Is this statement true or false? Please explain from an economics perspective

pu3_liz that was insightful. Thanks a lot.

Answer 1

an increase in demand would cause the price of the notebook to rise.

an increase in supply would cause te price of the notebook to fall.

-keep in mind, this happens when only analysing one or the other. If you want to look at the effect o demand and supply:

an increase in demand would raise the quantity on demand, which would increase the price. And suppliers... looking at high demand and high price would obviously like to take the opportunity to supply. So... it would cause supply to increase as well... When this happens, it would lower prices slightly and then, it'l become stable.

BUt..... in the real world, supply for notebooks are more than demand. thus causing prices to be lowered due to competition in the market.

SO, i'd say your statement is true, i you only look at the demand graph and false, if you put demand and suppy together. Hope this helps

Answer 2

It could be true. Rises and falls in demand are only a signal to raise supply. But, it would probably be safe to say that it raised quantity. Is story a fictional story about the sales of notebooks? If it is, read the the whole thing. There will probably be some indication to the answer. Ex. If there were fifty notebooks made a day, and after a great increase in demand, there were still only fifty a day, then no. But if after the increase, they produced one hundred a day, yes.

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But in most cases, increase in demand increases supply, unless there is some other factor that prohibits it.

Answer 3

grant is a common and open term on an identical time as the quantity presented is thoroughly a technical and tutorial term, grant may be of militia, shape etc yet volume grant potential the monetary and tutorial makes use of.