Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Yes, supply and demand affects the changes of prices in a price-setting
system because of law of supply and demand.
The law of supply and demand is an economic theory which explains that how supply and demand are related to each other. It's a fundamental economic principle that when the supply exceeds demand the prices will fall. When demand exceeds supply, prices rise.
If there is an increase in supply for goods and services while demand remains the same, prices always fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.
If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise and a lower quantity of goods and services.
The same inverse relationship is applicable for the demand for goods and services. However, when the demand increases and supply remains the same, the higher demand will lead to a higher equilibrium price and vice versa.
To know more about law of supply and demand here:
https://brainly.com/question/4596280
#SPJ4
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.
