Question

In a market economy, what impact can a product shortage have
on a product's price?


How does a product surplus influence the product's price in a
market economy?

Answer 1

Answer:

A market shortage, in accordance with a supply and demand chart, drives up the price due to the fact that the demand would be higher than the supply.

During a product surplus, the price will go down because the supply is higher than the demand.

Explanation:

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