Asked by Natalie Schoenemann on Sep 24, 2024
Verified
Excess supply of a product exerts ___________pressure on prices
A) Zero
B) No
C) Upward
D) Downward
Excess Supply
A situation where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at the current price.
Downward Pressure
Describes a situation in which there are factors that are causing the price of an asset or security to potentially decline.
- Acknowledge the mechanisms through which market equilibrium is reached and the impacts of deviations from such equilibrium.
Verified Answer
MJ
Manpreet Jhass5 days ago
Final Answer :
D
Explanation :
Excess supply means that there are more products than there are buyers, which leads to a surplus. In such a situation, sellers may need to lower their prices to make their products more attractive to buyers, which creates downward pressure on prices.
Learning Objectives
- Acknowledge the mechanisms through which market equilibrium is reached and the impacts of deviations from such equilibrium.