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How do supply and demand work together to influence the price of a product?

A. Buyers create high demand for products with a large supply, which causes the products' prices to drop.
B. Sellers supply a certain amount of a product based on how much demand they believe it will have at a particular price.
C. Buyers set the supply of a good by purchasing it at a specific price, which creates demand among sellers to decrease the price.
D. Sellers create large supplies of products to keep prices low, while consumers lower demand to increase prices.


Sagot :

Final answer:

Supply and demand impact product prices by adjusting according to market conditions.


Explanation:

Supply and demand work together to influence the price of a product through their interaction in the market. When demand for a product increases, prices tend to rise, incentivizing more suppliers to enter the market, increasing supply and eventually lowering prices back to equilibrium. Conversely, if demand falls, suppliers may leave the market, reducing supply and potentially raising prices.


Learn more about Supply and demand influencing prices here:

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