What happens to prices when demand is low and supply is high?

When demand is low and supply is high, prices tend to decrease. This phenomenon is grounded in the principles of supply and demand, which dictate that when there are many goods available (high supply) but not many buyers (low demand), sellers are often compelled to lower their prices to attract consumers and facilitate sales.

In this scenario, the surplus of products on the market leads sellers to reduce prices to avoid excess inventory and potential losses. As prices drop, it becomes more attractive for buyers, who might then take advantage of the lower prices, even if their overall desire for the product is not strong. This relationship illustrates the inverse correlation between supply and demand in determining market prices.