If the supply of a good is greater than the demand, what is likely to happen to its price?

When the supply of a good exceeds the demand for that good, it creates a surplus in the market. In this situation, sellers are left with more product than they can sell at the current price. To incentivize purchases and reduce excess inventory, suppliers are likely to lower the price of the good. This adjustment helps to bring supply and demand back into balance.

As the price decreases, consumers may be more inclined to buy the product, ultimately leading to an increase in demand until the market reaches an equilibrium point. Thus, in the context of market dynamics, a surplus generally leads to a decrease in price in an attempt to align with consumer demand.