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marta [7]
3 years ago
7

How the following changes will affect demand and supply strong argument:

Business
1 answer:
Vilka [71]3 years ago
8 0

Answer:

Please see below for answer

Explanation:

<u>1 Reduction in subsidy by government </u>

The supply will be negatively affected as the production cost will get higher and it will get more difficult to meet the demand of the product.

<u>2 Increase in price of wood </u>

This will again have an impact on the supply as the production cost increases due to more expensive raw materials.

<u>3 Need of cupboards increased in universities </u>

The demand has increased in this case and the supply will have to be increased too if the demand is to be met.

<u>4 Reduction in tax for both buyers and seller of cupboard</u>

This will result in an increase in both supply and demand as more people might be able to afford the cupboards now as compared to before.

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