472,878 views
0 votes
0 votes
In a market economy, what impact can a product shortage have

on a product's price?


How does a product surplus influence the product's price in a
market economy?

User Curious Jorge
by
2.2k points

1 Answer

20 votes
20 votes

Answer:

A market shortage, in accordance with a supply and demand chart, drives up the price due to the fact that the demand would be higher than the supply.

During a product surplus, the price will go down because the supply is higher than the demand.

Step-by-step explanation:

Hope this helps.

User Jeremy Carlson
by
2.9k points