In December there is a large demand for evergreen trees. They are sold on city corners and parking lots for Christmas. According to the law of supply, what scenario would you expect to see with the Christmas trees

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31-05-2022
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In December there is a large demand for evergreen trees. They are sold on city corners and parking lots for Christmas. According to the law of supply, what scenario would you expect to see with the Christmas trees

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dubeyshailja64 dubeyshailja64 · Answer 1 · 2022-06-14T07:02:17+02:00

The scenario that will be expected to see with the Christmas trees is the increase in the supply and prices of the trees since October.

What is the law of supply?

The law of supply is a principle of microeconomics that states that when the price of an item or service rises, so the quantity of service that the company gives will also increase, and vice versa.

According to the law of supply, prices come down when supply increases for an item or service. When the price got declines of a product then the quantity provided also reduces.

Therefore, an increase in the prices and supply of the trees two months before to provide an adequate amount of supply as the demand is high.

Learn more about the law of supply, here:

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