What is called that market in which supply overwhelms demand ?
Correct answer: B. Depressed market
- A. Deflated market
- B. Depressed market
- C. Bearish market
- D. Weak market
Explanation
A depressed market has weak demand relative to supply, commonly producing low prices and reduced business activity. A bearish market mainly describes expectations of falling prices, not necessarily an actual excess of supply.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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