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According to Adam smith what happened when the supply of product increases?
The price decreases.
What would happen to the supply The price of the commodity decreases?
If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.
If demand decreases and supply is constant what happens to the equilibrium price?
If demand decreases and supply is constant, the price will increase.
What happens when the demand for a product decreases?
When demand decreases, supply increases.
When demand decreases and supply decreases what happens?
prices go higher
How does subsidy affect supply?
It decreases cost of production and increases supply.
What happens to both the supply and demand as the price decreases?
If the price decreases then the economic law of demand & supply comes in operation with increase in demand and decrease in supply, as the producer will not supply at the price unsuitable to them in the market .
What is the relationship between the law of supply?
As demand increases, supply increases, and as demand decreases, supply decreases. (Assuming Ceteris Paribus (All other factors are held constant))
How does raising the discount rate affect the money supply?
Decreases the money supply
What will happen if supply decrease?
I assume you mean micro-economic situations, hence not aggregate supply. Generally demand will increase as supply decreases, and vice versa, but how much depends on the elasticity of demand. This is because as supply decreases, price level decreases also, so more people will demand the good or service.
Decreases in aggregate supply can be caused by?
Lower Taxes
What happens when the supply of a product decreases?
Price increses
