If the demand for a good or service increases how will prices affect supply

Answer 1

When the demand for a good or service increases, it usually leads to an increase in prices, as sellers are willing to charge higher prices to maximize their profits. This increase in prices acts as an incentive for suppliers to produce and supply more of the good or service. As a result, the supply of the good or service will also increase to meet the higher demand. Therefore, when demand increases, prices usually increase, which in turn encourages an increase in the supply of the good or service.