answersLogoWhite

0


Best Answer
  • If supply increases even greater than demand the price should decrease.
  • Legislation could reduce price irrespective of other factors.
  • Competition from new entrants into the market would reduce price.
  • ...
User Avatar

Wiki User

14y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

12y ago

when price increase demand decreases

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What causes decrease in prices as demand increases?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

When according to the law of supply and demand when supply increases what else happens?

According to the law of supply and demand when supply increases, prices will decrease.


What happens to price as demand decreases?

Prices normally increase as demand increases and decrease as demand decreases.


What According to the law of supply and demand when supply increases what else happens?

According to the law of supply and demand when supply increases, prices will decrease.


How is today's gold prices increase or decrease?

as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.


When will happen if the sellers in the market increase?

As the Number of Sellers Increases, the Supply of the commodity Increases. As Supply Increases, and demand remains constant, Prices Decrease.


How is unemployment related to supply and demand?

when people are unemployed, it means there is a decrease in the workforce and a decrease in the quantity supplied as firms cannot produce as much as they could before. as there is a decrease in the supply, prices fall and demand increases.


What does the economic market do if demand remains the same and supply increases?

If demand remains the same and supply increases, then the prices of goods will decrease. An over-saturated market will lower the price of the product.


The Law of Supply and Demand states that if the supply of a product increases then the price of that product will?

decrease. It will also decrease if the demand decreases. Conversely, if the supply of a product decreases or if the demand increases, the price will increase.


Why can the law of demand apply only in a free market economy?

demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.


If gasonline prices increase does the demand for motorcycles increase or decrease?

Since motorcycles normally get better mileage than cars/trucks, I would think it's obvious that the demand for them increases.


Why do market prices go up?

Prices can rise for various reasons. However, they usually go up when demand increases, or if there is a condition that causes a scarcity of resources.


According to the law of demand , as prices decrease , the quantity of demand?

Nearly all demand curves share the fundamental similarity that they slope down from left to right, embodying the law of demand: As the price increases, the quantity demanded decreases, and, conversely, as the price decreases, the quantity demanded increases.