Consider the market for chewing gum where the demand is perfectly elastic, and the supply curve is upward-sloping. a decrease in supply will result in no change in the price of chewing gum
This is further explained below.
Generally, A price is the amount of money or other kinds of remuneration that one party offers to another in exchange for the provision of products or services.
There are various contexts in which a different term is used to refer to the cost of manufacturing. If the item is considered a "good" in the context of the business transaction, the term "price" will most often be used to refer to the amount of money paid for it.
In conclusion, Take, for example, the market for chewing gum, where the demand curve slopes upward and is completely elastic, while the supply curve slopes downward.
The price of chewing gum will not alter as a direct consequence of a reduction in the available supply.
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