When a market is in surplus, there is pressure for the price to move upward.

Name: When a market is in surplus, there is pressure for the price to move upward.
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Question

Quizplus · Accepted Answer

When a market is in surplus, there is an excess supply of goods or services, which creates a downward pressure on prices as suppliers compete to sell their product. This means there is no pressure for the price to move upward. Instead, suppliers may lower their prices in order to sell their excess inventory.

When a Market Is in Surplus, There Is Pressure for the Price