In theory, what should happen if there is excess supply for a good, what should happen?

a) prices remain constantb) suppliers will increase pricec) consumers will demand mored) suppliers will reduce pricethe answer would be D as the supply increases, this causes a rightwards shift in supply, with demand remaining constant. this will result in the price level decreasing.

AD
Answered by Adam D. Economics tutor

1319 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Give two disadvantages to the government of rising unemployment.


How do you determine consumer and producer surplus in a monopoly?


Define market failure and give an example. Explain how government intervention may reduce market failure.


A football club raises all stadium seat prices by 5%. The demand for seats falls by 1% in zone W, by 3% in zone X, by 5% in zone Y and by 6% in zone Z. In which zone is the responsiveness of demand for seats to the price change elastic?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences