Question

How does over-supply affect prices and consumer perceptions of a product?

Answer 1

Over supply means lower prices. The company will be wanting to get rid of all their product and will sell it at a lower price. Consumers will be wiling to pay a lower price for the product.

Answer 2

Over supply decreases the price of an item if there is too much of an item on the market the price will decrease because they need it to be sold. A consumers perception maybe that it is either a very poor product because there is so many things being produced.