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a. How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
b. What is the first thing you would do in response to the change in this market signal?
c. What might be the second thing you would do and why?
d. What may be the benefit or danger connected with your decision to respond to the change in events and how could you decrease the "danger" and increase the "benefit?"

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Solution Summary

How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
b. What is the first thing you would do in response to the change in this market signal?
c. What might be the second thing you would do and why?
d. What may be the benefit or danger connected with your decision to respond to the change in events and how could you decrease the "danger" and increase the "benefit?"

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a.How would you know demand has increased? (What is the first piece of information which would lead you to conclude that demand has increased?)
- A rise in prices is generally the first indicator that demand has increased.

b.What is the first thing you would do in response to the change in this market signal?
- As a supplier, I would ensure that there is enough quantity to meet the increase in demand. If the ...

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