Is the regulating force in the marketplace. If the number of companies producing an item increases, the price of the item will be —than before. People will buy the item because it is cheaper

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11-06-2022
Social Studies

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Is the regulating force in the marketplace. If the number of companies producing an item increases, the price of the item will be —than before. People will buy the item because it is cheaper

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Tundexi Tundexi · Answer 1 · 2022-06-17T18:16:42+02:00

If it occurs that the number of companies producing an item increases, then, the price of the item will be lesser than before.

What makes the item lesser?

In economics, the demand law states that the lower the price, the higher the quantity demanded.

Because the firms will be competing, then, there will be a reduction in prices in order to maintain their market shares which makes the product cheaper,