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If the price of a good decreases, what happens to supply?

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If the price of a good decreases, what happens to supply?

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  1. decrease because suppliers will have less interest on producing on lower prices


  2. As the price of a normal good decreases, the quantity supplied decreases.

  3. supply will increase and demand will decrease but this would not be good for that particular country as a result the best proportion is maintained to have best economic conditions

  4. The law of supply and demand says that a price will move either up or down based on the balance of supply and demand.

    As the supply decreases, prices will move higher because the product is more scarce. As supply increases, prices will move lower because the product is readily available.

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