An increase in the price of demand will cause price to what

1 answer

An increase in the price of a good or service typically relates to the concept of demand elasticity. If we assume you are asking how an increase in the price of a good affects the quantity demanded, the general principle is that, according to the law of demand, an increase in price will usually result in a decrease in the quantity demanded, all else being equal.

However, if you meant how an increase in demand could influence price, then an increase in demand (for example, due to higher consumer preferences or income) will typically lead to an increase in price if the supply remains constant. This is because more consumers are competing to buy the same quantity of goods, driving the price up.

In summary:

  • An increase in price generally leads to a decrease in quantity demanded.
  • An increase in demand generally leads to an increase in price, assuming supply remains constant.