Answer to Question #20381 in Microeconomics for Alex

Question #20381
When a company expands...does supply increase first or demand? And then in the future, what will happen? Will supply or demand increase?
1
Expert's answer
2012-12-11T09:33:24-0500
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.

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