Falling prices for a service
A) create incentives for consumers to find cheaper substitutes.
B) eliminate shortages.
C) decrease quantity supplied of the service.
D) create incentives for businesses to produce more.
E) do all of the above.

Question

Quizplus · Accepted Answer

Falling prices for a service decrease the quantity supplied because suppliers are less willing to offer the same amount of service at lower prices, reducing their profit margins.

Falling Prices for a Service