Suppose a good or service is highly desired, but the quantity supplied is limited. How does the competition among consumers affect profits for the selling firms?

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asked Sep 15, 2016 107k views

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ZeeMonkeez · Answer 1 · 2016-09-19T21:48:56+0000

If a good or service is highly desired, but the quantity supplied is limited, the sellers usually experience higher profits, because consumers "bid up" the price of the scare good in the market.

Suppose a good or service is highly desired, but the quantity supplied is limited. How does the competition among consumers affect profits for the selling firms?

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