When There Is Excess Supply of a Product in a Market

question 60

Multiple Choice

When there is excess supply of a product in a market,

• A) price will tend to rise.
• B) price must be above the equilibrium price.
• C) producers will expand output and sales will rise.
• D) price must be below the equilibrium price.

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Definitions:

ERG Theory

A theory of human needs and motivation developed by Clayton Alderfer, which condenses Maslow's hierarchy into three core needs: Existence, Relatedness, and Growth.

Progressive Need Gratification

Progressive need gratification refers to the ongoing process of satisfying one’s needs and desires in a stepwise or continuous manner.

Existence Need Category

Basic human needs related to physical and material well-being, such as food, water, shelter, and safety.

Alderfer

Refers to Clayton Paul Alderfer's ERG theory, which condenses Maslow's hierarchy of needs into three core needs: Existence, Relatedness, and Growth.