Helpp.if the price increases wat happens to the demandd???

Question

and if price increases wat happens to the supply of the product?

Answer 1

Trick question. If price increase, demand (that is the demand curve) doesn't change. Only the quantity demanded change. It is a move along the existing demand curve. A change on the demand schedule. Only changes in tastes, incomes, price of substitutes, or price expectations change demand as a whole.

This is one of the most confusing parts of teaching economics. Look out for questions that hope to mix you up on dmenad versus quantity demanded.

Answer 2

higher price = lower demand

lower demand = surplus in the supply

Answer 3

Price Increases = Demand Decline = Increased Supply

Answer 4

It depends, if the price increase is small, nothing, but if it is large, then demand will eventually fall

Look at gas, we are at almost at $4 a gallon, yet demand is just now starting to fall {Gas went up $2.50 a gallon before demand changed at all}. So consumers can shake off a lot of increases, but if they get too high, demand will drop.

And for the supply, it will either not change or go up. If supplies are low because of high demand {gas}, supply will be low until demand falls.

Answer 5

I hope this is a joke.lol

Anyways the anwer is if Price rises demand will fall and supply will rise. Consumers are willing to buy less at a higher price and producers are willing to produce more at a higher price. Makes sense, right?

If the good is inelastic (cigarettes, booze) a price increase will cause demand to fall but total revenue for producers to rise.

An elastic product (chips, cookies, binders) a price incease will cause demand to fall and total revenue to fall also.