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what are the effect of an increasing in the price of gas on the quantity supply and price of food?
Wiki User
∙ 10y ago
Gas (petrol or diesel) is the main substance to fuel transport vehicles including air freight, rail and sea freight as well as road. If the cost of fuel increases then eventually the cost of the products carried will rise pro rata. If fuel is used to make the food, farm the food or to maintain the foods storage capability then the cost will increase the product cost.
Wiki User
∙ 10y ago
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An increase in supply will have what effect on equilibrium price and quantity?
Increase in supply in the face of steady demand will result in lower price.
What equilibrium price and equilibrium quantity?
equilibrium price and equilibrium quantity?: equilibrium price: When the price is above the equilibrium point there is a surplus of supply The market price at which the supply of an item equals the quantity demanded Price at which the quantity of goods producers wish to supply matches the quantity demanders want to purchase sa madaling salita supply=demand=price equilibrium quantity: Amount of goods or services sold at the equilibrium price The quantity demanded or supplied at the equilibrium price. supply=demand ayos?
What impact will short supply of material have on budget preparation?
A short supply will usually have the effect of increasing price. This is due to basic laws of supply and demand. If the price of raw materials increases, then the forecasted profit will be in jeopardy.
What detemines the price and the quantity produced of goods?
Supply determines the price and quantity of produced goods.
A decrease in demand will have what effect on equilibrium price and quantity?
There will be a decrease in price and quantity.
When is the profit-maximizing quantity of output reached?
To maximise profits, the quantity of output reached (supply) must be lesser than the demand, increasing the value and consequently the price of a certain good or service.
What is the Importance of equilibrium price and quantity?
The importance of equilibrium price and quantity is that it creates a point where there is no pressure on the market to shift supply or demand. Suppliers supply exactly the quantity demanded.
How is quantity affected by price changes?
supply elasticity
What happens to the equilibrium price and equilibrium quantity if the demand decreases and the supply is constant?
price rises and quantity increases
When does law of supply occur?
When price rises, the quantity supplied rises; as price falls, the quantity supplied falls.
What are example of product with perfectly elastic and perfectly inelastic supply?
Elasticity of supply describes how a product's quantity affects its price. Milk, for example, has an elastic supply - the quantity goes up and the price goes down. Or, as the quantity is limited, the price goes up. Inelastic supply implies that availability does not affect price, such as with airplane flight tickets.
How does quantity supplied of a good with a large elasticity of supply react to price change?
It will be very sensitive to price change. A change in the price will change the quantity supplied by a factor greater than 1. ps: Price elasticity of supply= (% change in quantity supplied)/(% change in price)
