Example: A new phone becomes popular and production costs drop because of new technology. • Price: May stay the same or drop • Demand: Increases (trend) Supply: Increases (cheaper to produce) • Reason: Higher demand pushes price up, but higher supply pushes price down - so the effect on price depends on which factor is stronger. Your turn: 1. Rice prices go up due to a drought, and people start switching to bread instead of rice. Price: • Demand: Supply: Why:

Question

Example: A new phone becomes popular and production costs drop because of new technology. • Price: May stay the same or drop • Demand: Increases (trend) Supply: Increases (cheaper to produce) • Reason: Higher demand pushes price up, but higher supply pushes price down - so the effect on price depends on which factor is stronger. Your turn: 1. Rice prices go up due to a drought, and people start switching to bread instead of rice. Price: • Demand: Supply: Why:​

BrainlyModIsBusy · Answer

Price: IncreasesDemand (for rice): Decreases (some buyers switch to bread)Supply (of rice): Decreases (poor harvest)Why: Supply falls sharply, pushing price up. The substitution to bread reduces rice demand, but not enough to offset the big supply drop—so rice prices still rise.

Answered by BrainlyModIsBusy | 2025-08-24

Answer (1)

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