Question

The largest national herbal supplement store is running a sale on its excess supply of Vitamin...

The largest national herbal supplement store is running a sale on its excess supply of Vitamin C supplements. With this new price change what do you think will happen to the Vitamin C supplement market?

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Answer #1

ANS

If the largest national herbal supplement store is running a sale on its excess supply of Vitamin C supplements then it means that the price of vitamin C supplements will decrease as the supplement store has to clear the excess supply also the market demand of Vitamin C supplements will increase. The future prospects of this sale will have a positive impact on the market of Vitamin C supplements as the buyers would also become habitual to the product and due to which the consumer preference model will shift in the favour of Vitamin C tablets due to which their aggregate market demand will increase too. Also this willl lead to have the market demand and market supply of Vitamin C tablets to attain the equillibrium as the sale would get rid of the excess supply and then market will be in equilibrium.

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