Increasing production will increase quantity sold,which will decrease the price of all units sold.What is this concept known as

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Quizplus · Accepted Answer

This concept is known as the price effect. As production increases, the quantity of units available for sale also increases. This creates a surplus in the market, and competition among sellers drives the price down in order to sell all units produced. Therefore, the price effect refers to the decrease in price that occurs as a result of an increase in production.

Increasing Production Will Increase Quantity Sold,which Will Decrease the Price