QuestionMay 27, 2025

What happens to the price of a product when supply is high and demand is low? The price increases The price stays the same The price decreases The price becomes unpredictable

What happens to the price of a product when supply is high and demand is low? The price increases The price stays the same The price decreases The price becomes unpredictable
What happens to the price of a product when supply is high and demand is low?
The price increases
The price stays the same
The price decreases
The price becomes unpredictable

Solution
4.6(211 votes)

Answer

The price decreases Explanation 1. Analyze Supply and Demand Relationship When supply is high and demand is low, there is an excess of the product in the market. 2. Determine Price Effect Excess supply typically leads to a decrease in price as sellers try to attract buyers.

Explanation

1. Analyze Supply and Demand Relationship<br /> When supply is high and demand is low, there is an excess of the product in the market.<br /><br />2. Determine Price Effect<br /> Excess supply typically leads to a decrease in price as sellers try to attract buyers.
Click to rate:

Similar Questions