6.2+Questions

=1. Changes in prices are determined by changes in supply. If there is more of a supply price will increase because it is in demand more.= =2. If the supply falls the price equilibrium shifts and the price decreases as well.= =3. If there is a big demand for a product the price will increase because it is in demand, a lesser demand will decrease price.= =4. Surplus could be caused by too high of a price. Price will be lowered to get rid of excess supply.=