how does consumer demand affect the decision of the producer/supplier ?

1 Answer

  • 8 months ago

    As the price of a good goes up, consumers demand less of it and more supply enters the market. If the price is too high, the supply will be greater than demand, and producers will be stuck with the excess. Conversely, as the price of a good goes down, consumers demand more of it and less supply enters the market.

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