Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand
What will be an ideal response?
If the demand for bananas rises, a shortage is created at the original equilibrium price. This means there will be upward pressure on price. As price rises, quantity demanded falls and quantity supplied increases until the two are equal.
Economics
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All of the following are conditions which are favorable to the formation of cartels except
A) the existence of a small number of firms. B) geographic proximity of firms. C) homogeneity of the product. D) easy entry into the industry.
Economics
The successor organization to GATT that handles trade disputes among its member nations is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
Economics