-What happens as the result of a surplus?
A) There is downward pressure on prices.
B) There is upward pressure on prices.
C) Consumers begin to view the good as an inferior good because it is too commonplace.
D) Demand for the good increases.

Question

-What happens as the result of a surplus?
A) There is downward pressure on prices. 
B) There is upward pressure on prices. 
C) Consumers begin to view the good as an inferior good because it is too commonplace. 
D) Demand for the good increases.

Quizplus · Accepted Answer

A surplus occurs when the quantity supplied of a good exceeds the quantity demanded at a given price, leading to downward pressure on prices as sellers attempt to clear their excess inventory.

-What Happens as the Result of a Surplus