Excess supply in a market usually results in which of the following?

Excess supply occurs when the quantity of a good or service available in the market exceeds the quantity demanded by consumers. This imbalance leads to a situation where there are more goods available than people are willing to purchase at the current price. To resolve this, suppliers often lower their prices to encourage more consumers to buy the excess supply.

By decreasing prices, suppliers aim to stimulate demand and bring the market back into equilibrium where supply equals demand. This process is a fundamental principle of market economics, where prices fluctuate in response to changes in supply and demand dynamics. As prices decrease, consumers are typically incentivized to purchase more, which helps to clear the excess inventory.

In contrast, increased product value, higher demand, and increased competition among suppliers are less likely to occur in the scenario of excess supply. When there is already too much product in the market, it typically does not lead to increased value or higher demand. Instead, it often leads to price reductions and other strategies to manage the surplus.