Assuming all other things are constant, you notice that the price of bananas is higher. It would decrease. If the number of buyers in the market decreases, c. the market demand will decrease. A dress manufacturer is expecting higher prices for dresses in the near future. We would expect c. the dress manufacturer to supply fewer dresses now.
Wheat is the main input in the production of flour.
Refer to the table above. When there is a surplus in a market, a. there is downward pressure on price. On the graph, the movement from S to S1 is called b. an increase in supply. Economists use the concept of price elasticity of demand to measure a. how much buyers respond to changes in the price of the good. On the graph shown, the elasticity of demand from point A to point B, using the midpoint method would be d. - 2.5 28.