When there is a surplus. Obviously the producer/seller has more of the item than the consumer/buyers want or need. Therefore, they (producers) are reducing the price to unload the item. A surplus tends to cause prices to fall.
The name of the plan for government the pilgrims created before leaving the Mayflower in the New World was referred to as the Mayflower Compact, and was one of the first written documents of its kind in North America.
