Which of the following would cause price to decrease?
A)a decrease in supply
B)an increase in demand
C)a surplus of the good
D)a shortage of the good

Question

Quizplus · Accepted Answer

A surplus of the good means that there is an excess supply of the product in the market relative to the demand for it. This would lead to a decrease in price as sellers would need to lower the price to attract buyers and get rid of the excess supply.

Which of the Following Would Cause Price to Decrease