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Marta_Voda [28]
3 years ago
8

In a market economy, prices are determined by supply and demand. How is the price of an item affected if the supply goes down?

History
1 answer:
leva [86]3 years ago
8 0

In neo-classical economics, if the supply of a product with demand goes down there will be a corresponding increase in the price of the product as suppliers take advantage of the demand in the market.

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