What happens if there's too much supply and not enough demand?

Answer 1

When there is an excess supply and insufficient demand in a market, it typically leads to a surplus of goods or services. This surplus can result in lower prices as producers try to sell off their excess inventory. In the long run, this imbalance can also lead to decreased production and potential layoffs as companies adjust to the lower demand. Overall, it can disrupt the equilibrium in the market and impact both producers and consumers.

Answer 2

when quantity supplied is higher than the quantity demanded, there is an excess of goods produced which are not used which leads to surplus. as the people are not consuming the goods or buying them, they are remaining and must be destroyed or controlled by the government through price control schemes or interventions such as setting up a price price floor to control surplus

Answer 3

If supply is greater than demand, the price in the shops should drop as shopkeepers' try to sell off stock that customers aren't buying. Unsold or poorly selling stock takes up room in shops and warehouses, and represent dead money.