Answer to Question #20381 in Microeconomics for Alex

Question

When a company expands...does supply increase first or demand?
And then in the future, what will happen? Will supply or demand increase?

Answer 1

When the company expands it means that market can offer more, so the supply increase
first. The quantity supplied refers to the amount of a certain good producers
are willing to supply when receiving a certain price. In the future the more is
supplied, the lower the price for goods, the lower the price, the higher the
demand.