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Rudiy27
3 years ago
12

What is the effect on market when suppliers under invest in their businesses​

Business
1 answer:
yanalaym [24]3 years ago
8 0

Answer:

  • Low supply
  • Scarcity
  • Low economic growth

Explanation:

When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.

For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.

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