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No. That's not how microeconomics and supply/demand curves works. "increasing suppy" does not mean "producing more goods". Increasing supply means producing mo
by stale2002 9y ago
No. That's not how microeconomics and supply/demand curves works.
"increasing suppy" does not mean "producing more goods". Increasing supply means producing more goods AND lowering prices so much that those goods are then sold.
And then consumers look at the price and will decide to buy more.
That's how supply and demand curves work.
- petilon 9y ago>> lowering prices so much that those goods are then sold If you lower prices so much then you may have to sell at a loss, and this is the reason smart businesses won't increase supply unless they know demand exists. Demand has to exist first. Consumers aren't going to buy your mud-pies no matter how much you lower prices.