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29 August, 07:10

How is a shortage or a surplus corrected

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  1. 29 August, 08:45
    The answer to this question lies in the law of supply and demand. The steering force in determining supply and demand is price.

    Therefore, if you have a shortage, price will go up. This will drive demand down.

    If you have a surplus, price will go down. This will entice more people to buy your product thus reducing your surplus.
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