7.When the supply of a good exceeds the demand for it, what is likely to happen to the price? A) It will rise B) It will fall C) It will remain constant D) It will fluctuate randomly
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at a given price, during a specific period. It is influenced by factors such as price, income, tastes and preferences, and the availability of substitute goods or services. In simple terms, it represents the desire and purchasing power of consumers for a particular product or service.
Supply, on the other hand, refers to the quantity of a good or service that producers are willing and able to provide to the market at a given price, during a specific period. It is influenced by factors such as the cost of production, technology, resource availability, government regulations, and the level of competition in the market. In essence, supply represents the producers’ ability to provide goods or services to satisfy consumer demand.
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