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

1291 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Following a period of negative economic growth, explain how total government spending and tax revenues are likely to be affected.


What is an oligopoly?


Explain what is meant by a negative externality and give an example of a negative externality that arises from fuel consumption.


What is meant by the different sectors of economies?


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