When the price of a product falls, the willingness and ability of people to buy the product are affected. Here's what happens:
1. Willingness to buy: When the price of a product decreases, people's willingness to buy it usually increases. This is because a lower price makes the product more affordable and attractive to potential buyers. As a result, demand for the product may go up as more people are willing to purchase it.
2. Ability to buy: On the other hand, the ability to buy a product depends on factors such as income and the cost of the product relative to other goods or services. If the price of a product falls, people may find it easier to afford, especially if their income remains constant. This can lead to an increase in the ability of people to buy the product.
Therefore, when the price of a product falls, both the willingness and ability of people to buy the product generally increase. This can result in higher demand and sales for the product, benefiting both consumers and sellers.
