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How does supply and demand affect consumers?

Economics Dec 17, 2020

How does supply and demand affect consumers?

Expert Solution

The main way that supply and demand affects consumers is through price changes. If there is a high demand for a product, typically the consumer will see prices rise. If there is a low demand, prices will fall. Similarly, high supply can cause prices to fall, while low supply causes them to rise. Of course the consumer can be affected in other ways as well. For example, if there is high demand for a product but not enough supply, it might be difficult for the consumer to purchase the product.

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