What happens to the price of a product when the supply of the product increases and demand stays the same?
Answer and explanation
Correct answer: A. The price tends to fall
- Step 1: More goods are offered to the same buyers. Step 2. Sellers lower prices to sell them. Answer: the price tends to fall. Why not the others: these are opposite or unrealistic.
Practise more Civics, History, Economics and Geography.
Free questions with an explanation for every one, and full timed GED Test (High School Equivalency) mock tests.