Assume that there has been a sudden increase in the demand for a certain good and that prices haven't had a chance to adjust yet. We would expect:

Question

Karter Bass

Business

6 December, 06:57

Assume that there has been a sudden increase in the demand for a certain good and that prices haven't had a chance to adjust yet. We would expect:

+2

Answers (1)

Know the Answer?

Alberto Holder · Answer 1

upward pressure on the current market price

Explanation:

Based on the information provided within the question it can be said that, assuming that the supply remains the same, we would expect upward pressure on the current market price. This is due to the law of supply and demand. As demand increases and supply remains constant, then price increases as more people want to purchase a product but there isn't enough. On the other hand if supply surpass demand then there is too much of a product that not enough people want to buy, causing prices to decrease.