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What happens to the price of a good or service ... - SS2 Economics Price And Quantity Determination Under Perfect Competition Question

What happens to the price of a good or service when there is a surplus in the market?

A

It increases

B

It decreases

C

It stays the same 

D

It is impossible to predict

correct option: b

(The price of a good or service decreases when there is a surplus in the market)

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