Final answer:
The price of an item decreases when supply exceeds demand, causing a surplus that pushes prices down. Hence, option A is correct.
Step-by-step explanation:
The price of an item typically decreases when the supply is greater than the demand. This is because the surplus of goods on the market exerts a downward pressure on prices, leading suppliers to reduce prices in order to attract buyers.
When consumers demand more goods than are available, the opposite occurs: prices are driven higher due to the scarcity of the product, and the additional profit opportunities entice new suppliers to enter the market, eventually stabilizing prices as supply meets demand.
Regarding the computer market scenario, many more computers selling at much lower prices likely indicates that there has been an increase in supply.
This could be due to technological advancements, greater production efficiency, or other suppliers entering the market, resulting in a surplus of computers and thus, reduced prices.