When supply outstrips demand,market prices may drop well below their historical averages.

Name: When supply outstrips demand,market prices may drop well below their historical averages.
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

This statement is true. When there is excess supply of a product or service in the market, the prices may drop in order to attract customers and increase demand. This can lead to prices dropping below their historical averages, as competitors may also lower their prices in order to remain competitive.

When Supply Outstrips Demand,market Prices May Drop Well Below Their