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What happens if a toaster company makes 10,000 toasters to sell for $80 and they only...

  1. What happens if a toaster company makes 10,000 toasters to sell for $80 and they only sell 7,000? What would they do with the other 3,000 toasters?
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Answer #1

In this case, the firm can lower the price (i.e. selling the remaining 3000 toasters at a discount) to increase quantity demanded.

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