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Figure: Predicting Market Shifts
-(Figure: Predicting Market Shifts) Why is there a tendency for this market to move from P₁ to P₂?

Name: Use the following to answer question Figure: Predicting Market Shifts -(Figure: Predicting Market Shifts)Why is there a tendency for this market to move from P 1 to P 2 ?
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Question

Use the following to answer question Figure: Predicting Market Shifts -(Figure: Predicting Market Shifts)Why is there a tendency for this market to move from P₁ to P₂?

Quizplus · Accepted Answer

Excess inventories indicate a surplus, leading firms to reduce prices to clear out the excess supply, causing the market to move from P1 to P2.

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