- The price of that product would eventually fall.
- Bankruptcy
Explanation:
When the companies generate more products that they can sell, they will be forced to stock those products in their warehouse.
The amount that they store will keep increasing until eventually they have to take some sort of measurement to attract consumers' interest. Under such situation, it is very likely they will reduce the price of the product.
If the amount that they sell after reducing the product could cover the cost of operation, the company might still be able to survive to continue the operation. But it couldn't cover the cost of operation, they might've been forced to declare bankruptcy.
One of the key factors that prompted the change in Ronald Reagan’s approach toward the Soviet Union during his second term was the the USSR was visibly crumbling, so he could afford to be more assertive.
