The price of a good will fall if
A)there is a shortage of the good.
B)demand for the good increases.
C)there is a surplus of the good.
D)the supply of the good decreases.
E)demand for the good does not change.

Question

Quizplus · Accepted Answer

If there is a surplus of the good, meaning there is more supply than demand, then sellers will have to lower the price of the good in order to attract buyers and clear out the excess supply.

The Price of a Good Will Fall If