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AveGali [126]
3 years ago
10

Why do fads often lead to shortages, at least in the short term?

Social Studies
2 answers:
Mama L [17]3 years ago
8 0

Answer:

Due to increased demand.

Explanation:

Fads are accompanied by increased demand for the fashionable product. Thus, in the short term the production capacity of this product does not increase, thus, the increase in demand raises prices and, consequently, culminates in scarcity by excess demand.

frozen [14]3 years ago
7 0
<span>Demand increases so quickly and unexpectedly that time is needed for the quantity supplied and price to increase to reach a new equilibrium point.</span>
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