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From course:

Principles of economics

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Question:

Explain Lower Price, Smaller Quantity Supplied:

Author: liv da



Answer:

Conversely, when the price (P) of a good decreases, suppliers are less inclined to produce and sell as much of that good because lower prices mean lower potential profits. This is shown by the downward arrow (↓) for both price and quantity supplied (QS).


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liv da
liv da