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Surplus drive price down, and shortages drive them up". True or False?

User RicoZ
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1 Answer

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Answer: True

Explanation: The statement stands true as according to the law of demand the price and demand are inversely proportional to each other.

Here it goes in a very simple way that suppose you do have 100 buyers and you have only 80 items to sell then yes they will be ready to pay higher price for them and on same context if seller has 120 products to sell so that the one can buy more then their requirement.

User Frederic Lavigne
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