Surpluses drive price up, whereas shortages drive price down.

Name: Surpluses drive price up, whereas shortages drive price down.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

Surpluses occur when there is more supply than demand, leading to a decrease in price as sellers compete to sell their excess goods. Shortages occur when there is more demand than supply, leading to an increase in price as buyers compete to purchase the limited available goods.

Surpluses Drive Price Up, Whereas Shortages Drive Price Down