The price of a good will tend to fall when a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good increases. d. the supply of the good decreases.

Question

Emely Mcgee

Business

7 July, 08:33

The price of a good will tend to fall when a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good increases. d. the supply of the good decreases.

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Answers (1)

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Cailyn Parks · Answer 1

B. There is Excess Supply of the good.

Explanation:

Excess Supply of good means that the Supply is more than the demand.

This abundance of the good creates competition among sellers, who reduce the price to sell their product.

Practical example to this case can be : Low price of a good in a market where lots of competitive sellers exist, High price of a good in a market where less competitive sellers exist.