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kiruha [24]
3 years ago
15

When happens when demand exceeds supply?

Business
1 answer:
ElenaW [278]3 years ago
4 0

A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.

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