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Question
If the demand for tomato in a market remains the same as always and supply increases, which of the following do you think is likely to happen?
If the demand for tomato in a market remains the same as always and supply increases, which of the following do you think is likely to happen?
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Solution
The correct option is C Price of tomato will decrease.
The Laissez-Faire principle does not allow the government to interfere in the affairs of private businesses. It allows the market to change naturally, according to the laws of supply and demand. Thus, in such a state, when the demand for a product increases, its price automatically increases, according to the law of the market.
The Laissez-Faire principle does not allow the government to interfere in the affairs of private businesses. It allows the market to change naturally, according to the laws of supply and demand. Thus, in such a state, when the demand for a product increases, its price automatically increases, according to the law of the market.
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