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What Happens When Supply Exceeds Demand in a Market?

When there are more items for sale than people want to buy, it can cause some problems:

  • Too many products: Some items don’t get sold, which can lead to waste.
  • Lower prices: Sellers might have to drop their prices to get people to buy, which can cut down their profits.
  • More competition: Businesses may find it hard to keep up, and some might even have to close down.

To fix these problems, companies can try a few things:

  • Make less: By producing fewer items, they can help balance what’s available with what people want.
  • Be creative: They can come up with new features or ways to market their products to get more buyers interested.

But it’s important to know that these ideas take time and effort, and they don’t always work.

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What Happens When Supply Exceeds Demand in a Market?

When there are more items for sale than people want to buy, it can cause some problems:

  • Too many products: Some items don’t get sold, which can lead to waste.
  • Lower prices: Sellers might have to drop their prices to get people to buy, which can cut down their profits.
  • More competition: Businesses may find it hard to keep up, and some might even have to close down.

To fix these problems, companies can try a few things:

  • Make less: By producing fewer items, they can help balance what’s available with what people want.
  • Be creative: They can come up with new features or ways to market their products to get more buyers interested.

But it’s important to know that these ideas take time and effort, and they don’t always work.

Related articles