# When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics? Correct Answer: B. Supply and Demand theory. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?

Direct Answer & Quick Reference

The correct option is **B. Supply and Demand theory**.

A. Cost push theory

B. Supply and Demand theory **(Correct Answer)**

C. Fundamental theory

D. Ricardo’s theory

✨ Explain with AI

Verified Key: B. Supply and Demand theory
Solved by 4,785+ students

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