Question

when a store has a sale, it cuts the prices on the goods it sells. is that more likely to happen when there is a surplus or when there is a shortage? explain (optional but i need it)

Answer 1

When there is a surplus. Obviously the producer/seller has more of the item than the consumer/buyers want or need. Therefore, they (producers) are reducing the price to unload the item. A surplus tends to cause prices to fall.

Step-by-step explanation: