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

1304 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Why does a govt focus on economic growth as a primary objective and should it always pursue this objective. Give reasons for your answer.


What are causes of globalisation?


Why are subsidies a more efficient way of reducing prices than price ceilings are?


How can I learn to memorise all the different market structures?


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