Economics

Economics
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  • A business set a price for their goods so they can earn a profit.
  • When a good is in high demand, the price will go up resulting in the company earning more money.
  • When a product is in high demand, the companies will need to produce more of the product to meet the demand.
  • If companies raise the price too much, it will result in people not wanting to buy the product any more.
  • To make consumers buy their product, producers also make their product in more varieties and more options.
  • To convince consumers to buy more of their product, companies make the goods more healthy or more environmentally friendly.
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