Suppose there is excess supply in the market for PokÈmon toys. We would expect to find:

Question

Quizplus · Accepted Answer

Excess supply means that there are more PokÈmon toys available than people want to buy. As a result, suppliers will try to sell their excess inventory by lowering the price of the toys in order to attract buyers. This lower price should encourage more people to buy the toys, which will eventually balance out the market. Therefore, we would expect the price of PokÈmon toys to fall.

Suppose There Is Excess Supply in the Market for PokÈmon