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Maybe nothing. The textbook answer is, "the price of the commodity and demand for it are inversely related--as price goes up demand goes down; as price goes down demand goes up."
The reality is, price is used to either attempt to stimulate or attempt to stifle demand. It doesn't necessarily work--if you sell sand and no one is pouring concrete right now because it's too cold to work, you could cut the price to free and still not sell any. OTOH, if you're selling corn and you would like the breakfast cereal companies to stock up so you can quit paying interest on the loans you took out to buy your inventory, cutting the prices would probably work.
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Will consumer buy more when price of a commodity falls?
according to law of demand consumer buy more of the commodity when price decreases
What happens to demand when The price of the commodity is expected to decrease?
Scarcity
If price rises from 15 to 25 and quantity demanded falls from 20 to 10 units this commodity would have what demand?
increased demand
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
When the price of a compliment of commodity X falls what happens to the demand for X?
it increases
Will consumer buy more when price of a commodity falls?
according to law of demand consumer buy more of the commodity when price decreases
What happens to demand when The price of the commodity is expected to decrease?
Scarcity
What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?
Equilibrium price increases
What is the Difference between decrease in demand and contraction in demand?
if demand falls due to change in price of commodity its terms in Economics as contraction in demand, and if demand falls due to other reasons its term decrease in demand...
If price rises from 15 to 25 and quantity demanded falls from 20 to 10 units this commodity would have what demand?
increased demand
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
What happens when supply increases?
when the supply of a commodity increases but demand remains constant then price of the commodity falls which is called deflation with the result unemployment rises.on the other hand if supply rises and if demand also rises with same rate then this would have positive effect on the economy as the employment rises with out inflation.
Price elasticity of demand for luxury goods will be?
elastic becoz wen price of the commodity changes , it affects the demand for the commodity .. Demand for a product is sensitive to price changes .. With icrease in price , the demand decreases nd with decrease in price , demand increases ..
What is the principle of demand?
The law of demand states that all other things being equal, as the price of a commodity falls quantity demanded increases and vice versa.
Explain law of demand?
Law of demand is an important law of economics. It establishes a relationship between price and demand.other things renaming the same when the price of commodity falls its demand will go up likewise,when the price of the commodity rises its demand will fall price and demand moves in opposite direction.there is inverse relationship between demand and price.in other words low price high demand high price low demand.
