A new game system was very popular during the holiday season, but, as in the case with many toy fads, sales have dropped off significantly in the following months. A surplus of the systems now line the shelves of retailers across the country. In the absence of government intervention, what is likely to occur?
-the low price brought by a decrease in demand will incentivize producers to increase the quantity of game systems supplied to the market
-the low price brought by a decrease in demand will incentivize producers to decrease the quantity of game systems supplied to the market
the low price brought by a decrease in demand will incentivize producers to increase the quantity of game systems supplied to the market
-the high price brought by a decrease in demand will incentivize producers to increase the quantity of game systems supplied to the market
-the high price brought by a decrease in demand will incentivize producers to decrease the quantity of game systems supplied to the market
1 answer
The low price brought by a decrease in demand will incentivize producers to decrease the quantity of game systems supplied to the market.
1 answer