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Excess supply will result in suppliers ________ prices, which encourages demanders to demand ________ .

User Jay Dorsey
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Answer:

The correct words for the blank spaces are: lowering; more.

Step-by-step explanation:

In case firms have an excess of supply, they will rather sell their products at a lower price than keeping them stored for loss. According to the supply and demand theory, if the prices decrease, so will the quantity supplied but the quantity demanded will rise.

User Deam
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