The cycle of increased market demand that leads to _______ and then a(n)______in market price has caused many firms bankruptcy.

Question

The cycle of  increased market demand that leads to _______ and then a(n)______in market price has caused many firms bankruptcy.

Quizplus · Accepted Answer

The sentence states that the cycle leads to bankruptcy, which implies a negative consequence. Overexpansion, which is an excessive increase in production or investment, is often the cause of bankruptcy because it leads to higher costs and lower profits. This results in a decrease in market price as the supply exceeds demand. Therefore, the best choice is C: overexpansion; decrease.

The Cycle of Increased Market Demand That Leads to _______