Answer to Question #95466 in Microeconomics for Obenewaa

Question #95466
Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount. What happens to the price of candy and the quantity of candy?
1
Expert's answer
2019-09-30T09:15:24-0400

Price of candy is likely to fall to a lower price since there will be a high quantity of candy due to an increase in supply of candy in the market.This will lead to a high demand for candy by the customers.


The price of candy will rise due to an increase in the demand for candy since, more customers are willing to buy at the prevailing prices. Also this will encourage the suppliers to produce more of the candy.




Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS