The cycle of increased market demand that leads to ______and then a(n)______in the market supply curve has caused many firms bankruptcy.

Question

The cycle of  increased market demand that leads to ______and then a(n)______in the market supply curve has caused many firms bankruptcy.

Quizplus · Accepted Answer

The correct sequence is increased market demand leading to overexpansion by firms, attempting to meet this demand. This overexpansion can then result in an increase in the market supply curve as firms produce more goods or services. However, if the demand does not sustain at the higher levels, firms can face difficulties, potentially leading to bankruptcy.

The Cycle of Increased Market Demand That Leads to ______And