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Question
Will you always be ready to sell more if the price of the commodity increases in the market?
Very Short Answer
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Solution
Typically, a producer is likely to supply more when the price increases. However, this is not always the case. If the producer anticipates that prices will rise further in the near future, they might choose to withhold the stock temporarily.
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Chapter 6: Supply and Law of Supply - TEST QUESTIONS [Page 6.18]
