Ask Question
BusinessBusiness
15 February, 01:37

Supply affects prices

+3
Answers (1)
  1. 15 February, 03:48
    0
    Over supply or undersupply affects the prices

    Explanation:

    The level of supply of a product or service in the market affects its price. When a product is over-supplied, the prices tend to fall. The principle will work best for necessary goods such as food and gas, but will also apply in all commodities.

    For example, during the rainy season, vegetables and other agricultural products are in high supply. As a result of their prices tend to decline. If the supply of oil is low globally, price tends to increase.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Supply affects prices ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is not a major determinant of the price elasticity of demand? A. availability of close substitutes B. proportion of income spent on the good C. amount of time that has elapsed since the price change D.
Answers (1)
Do you have to go to college to be a stockbroker
Answers (2)
Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.
Answers (1)
Four years ago, Company PJ acquired 1,000 acres of undeveloped land. On the date of the exchange, the land's FMV was $700,000. During the past four years, the land appreciated in value. by $600,000; a recent appraisal indicated that it is worth $1.
Answers (1)
A password is 4 characters long must consist of 3 letters and 1 number of letters cannot be repeated and the password must end with a number how many possibilities are there
Answers (1)
New Questions in Business
The pecking order explanation of capital structure states that a hierarchy of financing exists for firms, in which retained earnings are employed first, followed by debt financing and finally by external equity financing. A. TrueB. False
Answers (2)
Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service.
Answers (1)
Why are the three economic questions important in econ?
Answers (1)
New School Inc. expects an EBIT of $7,000 every year forever. The firm currently has no debt, and its cost of equity is 15 percent. The firm can borrow at 8 percent and the corporate tax rate is 34 percent.
Answers (1)
After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas.
Answers (1)
Home » Business » Supply affects prices
Sign Up Forgot Password?