Question

Why does the entrepreneur increase or decrease supply in response to price increases or decreases?

Answer 1

Moneyyyy is the answer $$

Answer 2

Answer:

Money

Explanation:

If the price of a product increases, an entrepreneur might increase supply because the product has a high demand. In order to make more money he/she will ramp up supply so said product will more available to consumers. On the contrary, if a product price decreases, the entrepreneur might decrease supply because the product has low demand. To save money, he/she might lower supply so he/she doesn’t spend a ton of money on a product that’s not a lot of people want to buy.