What happens to supply when the price increases?

Open in App

Solution

If the demand remains constant, then the increase in price will result in a decrease in the equilibrium price and an increase in the equilibrium quantity of goods and services.
Also read:
Price Elasticity of Supply
Market Supply Curve
Market Equilibrium Applications
Features of Indifference Curve
Market Equilibrium
Learn about more questions and answers on business studies and various other commerce topics from our website.

Suggest Corrections

Similar questions

what happens to equilibrium price and quantity when supply is prefectly inelastic and demand changes

what happens to equilibrium price and quanity when demand is prefectly elastic and supply changes

According to the law of supply, what will happen to the supply of commodity with an increase in the price of a commodity?

Join BYJU'S Learning Program