Pierce Mejia
10/12/2023 · Elementary School
What is the likely outcome in a market when supply exceeds demand for a product, leading to surpluses? The product will become scarce, leading to a shortage in the market. Businesses may lower prices and run sales or promotions to encourage more purchases. Prices are likely to increase as businesses respond to the excess supply. Prices will remain stable, and demand will catch up with supply over time.
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When supply exceeds demand, prices are likely to decrease.
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