Ask Question
BusinessBusiness
27 April, 23:42

If the price of pants increases, what would you expect would happen in the market for pants?

+3
Answers (1)
  1. 28 April, 02:22
    0
    Answer: There will be a surplus at the increased price.

    Explanation: Acc. to the law of demand as the price of a good rises the quantity demanded for the good will fall. This is represented by a movement up along the demand curve.

    Acc. to the law of supply as price of a good rises the sellers will supply more units of the good. This is represented by a movement up along the supply curve.

    At the increased price, there will be a surplus in the market given by Q's - Q'd.

    Eventually, the surplus will lead to a fall in the price of pants till demand for the good is equal to its supply.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If the price of pants increases, what would you expect would happen in the market for pants? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Assume there is a simultaneous increase in home foreclosures and a decrease in consumer incomes. Based on this information we can conclude, with certainty, that in the market for used single-family homes equilibrium: A) price will increase.
Answers (1)
Which form of business organization is established as a separate legal entity from its owners?
Answers (1)
Trading goods for other goods, as opposed to buying or selling goods using coins or paper money, is called what
Answers (1)
A corporation has issued $10,000,000 of 7 1/4%, 20 year, $1,000 par, convertible debentures, convertible at a ratio of 40:1. The bond is currently trading at 120, while the company's common stock is at 24. The conversion price per share is:
Answers (1)
Ryan is sitting in a seminar where a speaker is explaining the company's retirement plan options. Ryan is only 24 years old, and he thinks retirement is so far away that he doesn't think he needs to pay attention to the speaker.
Answers (1)
New Questions in Business
Charley has a typing service. he estimates that a new computer will result in increased cash inflow $1,600 in year 1, $2,000 in year 2 and $3,000 in year 3.
Answers (1)
Real GDP per person in Northland is $30,000, while real GDP in Southland is $10,000, However, Northland's real GDP per person is growing at 1 percent per year, and Southland's real GDP per person is growing at 3 percent per year.
Answers (1)
Canada and the U. S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if a. the U. S. has an absolute advantage over Canada in producing computer software. b.
Answers (1)
Ragtown Grill uses cost-plus pricing with a 40% mark-up. The company is currently selling 20,000 units annually, but has a capacity of 30,000 units. Each unit has a variable cost of $15.
Answers (1)
If automobile producers expect prices of automobiles to increase in the near future, what happens to supply today?
Answers (1)
Home » Business » If the price of pants increases, what would you expect would happen in the market for pants?
Sign Up Forgot Password?