Question

Listen
What is the likely outcome in a market when supply exceeds demand for a product, leading to surpluses?

Question 7 options:

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.


The product will become scarce, leading to a shortage in the market.

Answer 1

The likely outcome in a market when supply exceeds demand for a product, leading to surpluses, is:

**Businesses may lower prices and run sales or promotions to encourage more purchases.**

When there is excess supply, businesses often respond by lowering prices to stimulate demand and reduce the surplus.