Question

More demand less supply increase the market price? justify ​

Answer 1

Answer:

Increases in supply and demand pull the price in different directions. If demand increases more than supply does, we get an increase of price. If supply rises more than demand, we get a decrease in price. If they rise the same amount, the price stays the same.

Answer 2

If more people want something that isn’t widely available, the product has more value because there are not lots of products but there are lots of people who want the product. a producer could very easily jack up the price because he knows he has a few of what lots of people want.