Answer to Question #20381 in Microeconomics for Alex
When a company expands...does supply increase first or demand?
And then in the future, what will happen? Will supply or demand increase?
When the company expands it means that market can offer more, so the supply increase first. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. In the future the more is supplied, the lower the price for goods, the lower the price, the higher the demand.