2007-02-10 04:22:18 · 4 answers · asked by Yah 1 in Social Science ➔ Economics
The process you described generally results because of a decrease in demand. Another explanation could be an overproduction of an item causing a saturation of the product in the marketplace. Overproduction or market saturation is the leading stimuli to deflation.
2007-02-10 07:32:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The only explanation is a decrease in aggregate demand -- the total demand for goods and service in the economy. It would a temporary phenomena. Either the shock itself is permanent -- people delay spending because of the weather -- or supply will adjust in the long run and provide fewer goods and services.
2007-02-10 09:58:31 · answer #2 · answered by Allan 6 · 0⤊ 0⤋
Decrease in demand.
2007-02-10 07:39:11 · answer #3 · answered by Giggly Giraffe 7 · 0⤊ 0⤋
it really is B. because the price will flow down, and led to a circulation alongside the availability curve,which potential volume presented will cut back. A is the option. C will shift the availability to the right.D will shift the decision for to the right an same as A.
2016-11-26 21:24:33 · answer #4 · answered by ? 4 · 0⤊ 0⤋