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If a producer overproduces and sets the price of his product too high to allow him to sell all of his production?
Wiki User
∙ 15y ago
If the availability of a product is high (The result of over production) and its price is also high, then the sales usually comes down. When there is excess availability of stuff, the price tends to go down and to ensure that all the goods are sold, the producer may have to reduce his price.
trying to increase the price when surplus supply is there would have a negative effect and the sales may plummet...
Wiki User
∙ 15y ago
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