When do the laws of supply and demand have less effect on prices?

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Social Studies

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20 March, 20:34

When do the laws of supply and demand have less effect on prices?

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Answers (1)

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Martha Oliver · Answer 1

The laws of supply and demand have less effect on prices only when the demand decreases and supply remains unchanged.

Explanation:

The laws of supply denotes the quantity of good supplied rises as the price rises and falls as the price falls. The law of demand states that quantity of good demanded falls as the price rises and if quantity of good rises then price falls.

The laws of supply and demand are:

If demand increases supply remains unchanged and leads to higher price and quantity. If demand decreases supply remains unchanged and leads to lower price and quantity.