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Why do suppliers react to increased prices?​

User Mezod
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1 Answer

7 votes

Answer:

They react because of how much the price has increased.

Step-by-step explanation:

As the price of a good or service increases, the quantity that suppliers are willing to produce increases and this relationship is captured as a movement along the supply curve to a higher price and quantity combination. The Law of Supply: Supply has a positive correlation with price.

User Nick Charney Kaye
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