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notsponge [240]
3 years ago
5

there is a surplus of a new brand of cereal on the market. what will likely happen to the price of the cereal?

Business
1 answer:
Lerok [7]3 years ago
3 0

Answer:

The price of the cereal would fall.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.

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