suppose the demand for bananas increases explain


Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand.

If the demand for bananas rises, a shortage is made at the original equilibrium price.  The meaning of this is that there will be upward pressure on price.  Since as price rises, quantity demanded falls and quantity supplied raises until the two are equal.

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Financial Management: suppose the demand for bananas increases explain
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