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What is effect on demand on a product, when the supplier of that product rises?

User LizG
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The rise in the number of suppliers indicates an increase in the supply of a particular commodity. The increase in the supply will lead to a situation of excess supply. On the other hand, the situation of excess supply emerges when the commodity price is above than the equilibrium price and at this price, the demand is less than supply. However, this increased supply will shortly result in a fall of prices which would induce people to increase their demand.

Accordingly, the demand will increase and the market will move towards the equilibrium point.

User JeePakaJP
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