What will be the effect of demand of a paraffin if the its price rises?

1 answer:

6 0

In an economic market system, where there is competition, the supply and demand of a good or service determines the price and vice versa. Thus, in situations where the price increases, the quantity offered tends to increase, because the offerers have a higher profit perspective. On the other hand, demand tends to decrease, as consumers perceive the price increase and decrease the demanded quantity. Conversely, in situations where the price goes down, consumers have a spur to buy more, but the bidders tend to shrink the amount offered because their prospects for profit diminish. If market mechanisms prevail, the economy tends to find an equilibrium price at which the supply and demand for paraffins will be equal.

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Answer:

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