The law of supply and demand asserts that

a. demand curves and supply curves tend to shift to the right as time goes by.

b. the price of a good will eventually rise in response to an excess demand for that good.

c. when the supply curve for a good shifts, the demand curve for that good shifts in response.

d. the equilibrium price of a good will be rising more often than it will be falling.

Question

Business

Aydan Monroe

30 March, 00:34

The law of supply and demand asserts that

a. demand curves and supply curves tend to shift to the right as time goes by.

b. the price of a good will eventually rise in response to an excess demand for that good.

c. when the supply curve for a good shifts, the demand curve for that good shifts in response.

d. the equilibrium price of a good will be rising more often than it will be falling.

+2

Answers (1)

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Dakota Hicks · Answer 1

b. the price of a good will eventually rise in response to an excess demand for that good.

Explanation:

As more people are willing to purchase the good the price will rise. Because, the supplier can offer up to certain amount given their current production factors thus, this increase in demand is met with an increase of price. In the future this increase in price which generates more producer surplus will make more company's invest in the business or the current ones will develop new ways of production to produce more and therefore; lowering the price.