Its relative volume however could change as set by movements in the price or the supply. As a general economic principle: When the price of a product or service increases, the demand for the respective product or service is expected to decrease, while the supply is expected to increase

Vice versa, if the price of a product or service decreases, the demand for the respective item will increase, while the supply will decrease.

Given the context of an increasing supply, the demand for Mrs. Acres' homemade pies is expected to decrease; only in the short-term however. As her products better penetrate the market and advertise for themselves, the demand is expected to once more increase in the long-term.

Scenario 3 -- Contracting the production to a restaurant chain and maintaining a percentage of the income

This particular scenario is the most difficult one to foresee for the...

Considering however a context in which their introduction of new variables is limited, it could be estimated that in the short-term, supply would significantly increase, leading as such to a relative decrease in demand; the retail price on the short run is expected to remain constant. In the long run however, it could suffer some increases as the necessity arises for the profits to generate a satisfactory return for both Mrs. Acres as well as the restaurant chain producing the pies. In terms of the long-term evolution of supply and demand, these are expected to reach equilibrium and not undergo major changes -- all other things equal.