If there is a surplus in a market, competition among the sellers will drive price down.

Name: If there is a surplus in a market, competition among the sellers will drive price down.
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Question

Quizplus · Accepted Answer

A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price. To sell the excess inventory, sellers will often lower their prices, which increases competition among them and drives the price down until the market reaches equilibrium.

If There Is a Surplus in a Market, Competition Among