How Does Supply and Demand Influence Item Price?


Answer:

When an item is in short supply and there are tons of interested buyers, sellers increase prices to capitalize on the fact there is no-one else to buy from. Conversely, when an item is massively overproduced and there is very little buyer demand, sellers drop prices substantially to compete for customers.


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Updated: 2025-02-04
First published: 2025-02-04