Question

What are the causes of change in formation of commerce ?​

Answer 1

Answer:

Changes in Demand

When the demand in an economy increases the firms start producing more goods to meet the demand. There is more output, more employment, more income, and higher profits. ... But excessive demand may also cause inflation. On the other hand, if the demand falls, so does the economic activity.

Explanation:

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Answer 2

Hello !

       Fluctuations in Investments

Just as fluctuations in demand, fluctuations in investment is one of the main causes of business cycles. The investments will fluctuate on the basis of a lot of factors such as the rate of interest in the economy, entrepreneurial interest, profit expectation, etc.

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