How does the price system respond to surpluses and shortages?

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asked Mar 20, 2018 165k views

2 Answers

Saeed Shahrivari · Answer 1 · 2018-03-27T05:18:34+0000

The price system responds in this manner:

surpluses ( more than enough): the prices drop, so that they could sell more
shortages ( not enough): prices rise, because demand is high, they can make more money like that

hope this helps

How does the price system respond to surpluses and shortages?

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