Suppose in each of four successive years producers sell more of their product and at lower prices.This could be explained:

Question

Quizplus · Accepted Answer

If producers are able to sell more of their product while lowering prices, it suggests that there is an increase in supply relative to demand. This is consistent with a stable demand curve and increasing supply. It is not an exception to the law of supply, as the law states that as the price of a good increases, the quantity supplied of that good also increases.

Suppose in Each of Four Successive Years Producers Sell More