To adjust the quantity supplied after falling prices, producers must decrease the number of bicycles produced.
What are demand and supply?
- They are determinant elements of the economy and the market.
- They are essential elements in understanding consumer behavior and prices.
- They are elements that determine the production of goods.
The supply and demand of a product must be aligned with the production of that product. This alignment prevents waste, overpricing, shortages, overspending, and other economic problems.
Therefore, the drop in the price of bicycles may even increase demand, but it will result in excessive expenses for producers. Therefore, to provide market balance, producers must reduce the number of bicycles produced, in this situation.
More information on supply and demand is at the link:
https://brainly.com/question/3052281
