2007-01-16 11:18:55 · 12 answers · asked by em. 1 in Business & Finance ➔ Investing
If demand rises, supply lowers, because more people need it. Therefore, making the supply low.
2007-01-16 11:25:01 · answer #1 · answered by Arnold 3 · 1⤊ 1⤋
supply and demand effects the price of an item. Take tomatoes for instance, in the summer supply is high and it is able to meet the demand so price is reasonable. In the winter supply is low, due to out of season. The only ones available are hot house tomatoes. The demand is high versus the supply so the price is high. You will pay any price if the demand is there.
To answer your question, nothing happens to supply except maybe be sold out. When the demand is high as for a toy at Christmas time. The stores stock what they think will sell that year. When the demand it high that toy will be sold out.
2007-01-16 19:27:26 · answer #2 · answered by sally_little03 3 · 0⤊ 0⤋
Supply creates it's own deman says Say's law a theory in Economics.
To your question supply rise with demand may be after some confusion about price which the supplier might be or might not be able to raise due to lot of other econcomic factors.
2007-01-17 14:02:14 · answer #3 · answered by Mathew C 5 · 0⤊ 0⤋
Supply stays the same (in the short term), but prices may rise. In the long term, supply may increase such that the effect on price is tempered, or even so much that prices may fall again. Unless supply is fixed, in which case prices rise, which may result in a fall in demand and a new equilibrium will result.
2007-01-16 19:23:33 · answer #4 · answered by Carter 3 · 0⤊ 0⤋
If demand for widgets goes up, at first the supply (of new widgets for sale) goes down so the price of each new widget goes up as now 2 or more people are bidding against each other to buy a widget. The widget manufacturers see the price going up, and realize they can make a lot more money now on each widget sold so they make a lot more of them. Supply goes up, now many stores have them to sell to the 2 or more people who want them and the price goes down. Manufacturers are usually slow to react so they keep on making more even after everyone who wants one has bought one. With supply up, and demand down, price goes down.
2007-01-16 20:17:29 · answer #5 · answered by gosh137 6 · 0⤊ 0⤋
Prices will rise due to more demand of a product than there is.
Like what's happening with gas prices and other limited resources.
2007-01-16 19:26:59 · answer #6 · answered by *luz* 2 · 0⤊ 0⤋
Either you increase the supply enough to match the demand or you reduce the supply to increase your prices to the stratosphere.
2007-01-16 21:11:13 · answer #7 · answered by Anonymous · 0⤊ 1⤋
supply and demand have an inverse relationship. If one goes up, the other goes down.
2007-01-16 19:26:40 · answer #8 · answered by kelsey 7 · 0⤊ 0⤋
the more demand rises supply also rise!! i learned it in my goverment class wait i mean economics.
2007-01-16 19:28:07 · answer #9 · answered by lizz 1 · 0⤊ 0⤋
Sluppy shrinks Prices go up stock Vaule Raise as well
2007-01-16 20:46:23 · answer #10 · answered by rickkritcher 3 · 0⤊ 0⤋