Posted by Maddie:)) on Wednesday, May 6, 2009 at 6:27pm.
Can someone please help me.
I really want to know how productivity affects supply.
If productivity is "up" that means there is a much greater supply. It goes back to the old adage "supply and demand." If the supply is great but the demand is not, it will be hard to sell everything and the price drops. If the supply is short, or there is not much of a supply, and the demand is great, there will not be enough for those who wish to purchase it and then the price goes up.
Sra
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