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3 votes
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Suppliers will keep raising prices in a certain market as long as _____.

User MDR
by
5.2k points

2 Answers

1 vote

Answer:

Demand is high or supply is low

Step-by-step explanation:

Law of supply and when demand is high supply decreases so prices increase to maintain equilibrium

User Goldylucks
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5.3k points
2 votes

Answer:

Equilibrium is achieved, is the right answer.

Step-by-step explanation:

The supplier will keep rising the price until the demand exceeds the supply. Alternatively, the supplier will charge the price up to the equilibrium point. However, the equilibrium point is the point which is determined by the intersection of demand and supply curve. Moreover, any price above equilibrium price will show the excess supply. Thus supplier will raise the price up to the equilibrium point.

User WebbH
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5.2k points