Excess supply leads to fall in equilibrium price. True or false? How?

Yes. Excess supply leads to fall in price because during excess supply each and every seller wants to sell his commodity and thus would fix a low price to sell the it. When there is low price, the demand would increase because of law of demand. Thus this price will continue to fall until the excess supply is cleared, i.e., price will decrease to the level where market demand is equal to the market supply.

Lol sorry for a long explanation, but this is the answer. I suppose its a 3 mark question

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