🎓 GED Exam Prep

When the supply of a product exceeds the demand for it, what is the most likely immediate effect on the market price?

A The price will increase.
B The price will decrease.
C The price will remain stable.
D The price will become irrelevant.

✓ Correct Answer: Option B

When there is an excess supply (surplus) in the market, sellers must lower prices to attract buyers and clear their inventory, driving the price down until supply and demand balance.

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