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

1 Answer

5 votes

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.

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User Deam
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