Suppose a good or service is highly desired, but...

asked Jan 18, 2017 in History by Valene181
Suppose a good or service is highly desired, but the quantity supplied is limited. How does the competition among consumers affect profits for the selling firms?

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2 Answers

answered Jan 18, 2017 by anonymous
If a good or service is highly desired, but the quantity supplied is limited, the sellers usually experience higher profits, because consumers "bid up" the price of the scare good in the market.
answered Oct 25, 2017 by anonymous
I believe your answer is consumers bid up the price,which gives larger profits to the suppliers.

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