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If nobody wants what’s plenty around, will prices fall or go sky-high?
Updated: 11-Apr-2025

Prices will fall. When there's too much of something and not enough people want it, sellers lower prices to attract buyers. This is common with seasonal items like winter clothes in summer. The oversupply forces a drop in prices, showing the power of consumer preference in shaping the market.

Businesses must predict demand accurately, or they risk losing money. This is why market research and forecasting are so important in economics.

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