Sellers lower prices to expand market demand and boost sales volume. Lower prices create temporary excess demand, shifting equilibrium toward higher quantities. Both benefit because buyers save money while sellers increase total revenues.
During online festival sales, the prices of many products are very low. Use the concept of demand and supply to explain why the sellers sell at such a low price. What happens to the equilibrium when the price is lowered? Does this benefit only consumers or sellers as well? Explain.
Share
Sellers reduce prices during festival seasons because the law of demand dictates that lower prices attract massive customer volumes. Lowering prices creates high demand, shifting the market toward a higher equilibrium sales quantity. This arrangement benefits consumers through substantial savings and benefits sellers by allowing them to clear large inventories, attract new buyers and maximize overall revenue through bulk turnover.
For more NCERT Solutions of Class 9 Social Science Chapter 9 The Price Puzzle What Drives the Market Question Answer (2026-27)
https://www.tiwariacademy.com/ncert-solutions/class-9/social-science/