Practicing Success
Practicing Success
CUET Preparation Today
| Two friends A and B were discussing about the current market condition of lemons. A said if we reverse the present condition and suppose there is excess supply in the market of lemons. Then what will happen to the price? The other friend, B, said The prices will fall. As simple as that. When A asked the reason, B explained Some firms will not be then able to sell quantity they want to sell; so, they will lower their price. In your opinion, B is? |
Correct Wrong Partially wrong Cant say |
| Correct |
| If at prevailing price, market supply exceeds market demand, some firms will not be then able to sell quantity they want to sell; so, they will lower their price. |
