Page "Free market" Paragraph 12

When demand exceeds supply, suppliers tend to raise their prices, but when supply exceeds demand, suppliers will tend to decrease their prices in order to make sales.

Consumers who can afford the higher prices may still buy, but others may forgo the purchase altogether, demand a better price, buy a similar item, or shop elsewhere.

As the price rises, suppliers may also choose to increase production, or more suppliers may enter the business.